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Bullion

Keywords

Banking, Administration, Finance

Abstract

This paper examines the basic theories and concepts underlying bank management. The paper noted that portfolio management, especially the funds management aspect, represented the core of sound bank planning and financial control. The paper identified principal methods of assets and liability management including liquidity and asset management, forecasting, resource allocation, foreign exchange management and gap management were discussed. The twin concepts of overall bank liquidity and balance sheet interest rate sensitivity management are also highlighted. The paper further observed that that portfolio management in banks being an intricate matter usually requires the setting up of management committees to take charge of the bank's asset and liability arrangement.

Author Bio

The author is an Assistant Director, Banking Supervision Department of the Central Bank of Nigeria.

Publication Title

CBN Bullion

Issue

4

Volume

17

COinS
 
 

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