Asset–Liability Linkages in Managing Bank Funds: An Empirical Analysis

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Authors

  • M. R. Shollapur
     Department of Studies in Commerce, Karnatak University, Dharwad ,IN
  • Y. G. Baligatti
     K.R.C.E.S Degree College, Bailhongal ,IN

Keywords:

Sources, Uses, Fund Management, Banks' Capital Base, Asset-Liability Management.
Marketing Resource Management

Abstract

Funds management is an integrated approach to match liabilities (sources) and assets (uses). Each source of funding uniquely influences the employment of funds and the overall profitability of banks. Capital funds determine the risk absorption capacity as well as the type of asset(s) to be held by banks. The size and composition of deposits determine the volume of funds to be employed in investments and advances. Efficient management of funds requires mobilization and utilization of funds in a manner that minimizes costs, generates revenue, recovers operational and financial costs, and contributes towards reasonable returns. A mismatch between sources and uses would be imminent with increased linkage of banking operations to market dynamics. Therefore, it is necessary to trace the interrelationship between sources and usage of funds, and make an appropriate design that has a high degree of customer orientation.

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Published

2008-04-23

How to Cite

Shollapur, M. R., & Baligatti, Y. G. (2008). Asset–Liability Linkages in Managing Bank Funds: An Empirical Analysis. DHARANA - Bhavan’s International Journal of Business, 2(1), 28–36. Retrieved from http://informaticsjournals.com/index.php/dbijb/article/view/17941

Issue

Volume 2, Issue 1, 2008

Section

Correspondence/Notes

 

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