A micro financial institution had been facing inflationary pressures due to the region’s severe economic crisis . The economic volatility in the country affected the institution causing a maturity mismatch in their asset and liability management.
The project’s findings ensures the MFI developed a proactive and comprehensive asset liability management framework that aligns business strategies with risk profiles and enhances the MFI’s overall financial resilience.
Asset- Liability Management, Treasury, Risk Management
It’s important for financial institutions to implement robust monitoring systems and early warning indicators to detect emerging risks and take timely corrective actions when they operate in severe economic climates.