A decision support tool for fund management

Abstract

The purpose of this thesis is (1) to provide an overview for asset liability management approach to the bank management, and (2) to develop a tool for the senior management of a bank, which will be useful for the decision making process. The software developed will enable managers to see the risks involved, therefore make it easier to hedge them. The software will provide the user with profit-loss projections for given scenarios of the economy (FC devaluation, interest rates,etc.) for a certain structure of the balance sheet. Users will also be able to observe the changes in the profit/loss with changes in the items of the balance sheet for given economic scenarios.