![Asset-liability management](https://img-cdn.financeunlocked.com/headers-images/euromoney/1.jpg?ik-sdk-version=javascript-1.0.3)
Glossary
Banking
Asset-liability management
Asset liability management (ALM) is the process financial institutions undertake to address – and potentially profit from – current asset-liability mismatches as well as to smooth future mismatches. ALM typically incorporates liquidity, interest-rate risk and capital management.