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Finance Dictionary and Glossary of Investment Terms
Asset/Liability Management
Definition 1.
A technique employed by companies in coordinating the management of assets and liabilities so that an adequate return may be earned.
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Definition 2.
The task of managing the funds of a financial institution to accomplish the two goals of a financial institution: (1) to earn an adequate return on funds invested and (2) to maintain a comfortable surplus of assets beyond liabilities. Also called surplus management.
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