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| 13104. ASSET & LIABILITY MANAGEMENT IN FINANCIAL INSTITUTIONS. The paper compares and contrasts the conservative approach to asset management which prefers safety and liquidity over profitability to the "economic" approach, which calls for financial institutions to make calculations estimating the expected gains or losses from keeping funds in reserve or loaning them. The paper also explores how financial institutions in liability management realized that by varying the daily interest rates they offered on certificates of deposit, Federal funds, commercial paper, and other liabilities, they could gain some control over incoming funds and experience similar results to asset management. 10p., 30f., 13b. |
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