Md Monirul Islam
ALCO Formation ALCO is formed by senior officials of a bank. It is usually headed by the CEO or Managing Director (MD). The committee includes senior officials from Treasury, Credit, Investment, Resource Planning, and other important departments. The Board of…
Md Monirul Islam
Three Pillars of Asset-Liability Management (1) Balance Sheet Management and Profitability: The bank manages its assets and liabilities carefully. It maintains a proper balance between loans, investments, deposits, and other liabilities. This helps the bank increase its income and profitability….
Md Monirul Islam
Cash Reserve Ratio (CRR) CRR is the minimum percentage of a bank’s deposits and other specified liabilities that the bank must keep as cash with Bangladesh Bank. The bank cannot use this required cash for normal lending or other business…
Md Monirul Islam
Definition of Money Money is anything that is generally accepted as a means of payment for buying goods and services and settling debts. Its main characteristic is general acceptability. Reasons for holding Money (1) Transaction Motive: People hold money to…