LM stands for various terms. Discover the full forms, meanings, and possible interpretations of LM across different fields and industries.
Liability Management in the banking sector refers to the strategic process undertaken by financial institutions to manage their liabilities in a way that ensures liquidity, minimizes risk, and maximizes profitability. This involves careful planning and monitoring of deposits, borrowings, and other liabilities to meet the bank's obligations and regulatory requirements.
Effective Liability Management is crucial for maintaining the financial health of a bank, as it directly impacts the institution's ability to lend and invest. By optimizing the mix and maturity of liabilities, banks can better manage interest rate risks and ensure they have sufficient funds available to meet customer demands and unexpected financial challenges.
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