Asset/Liability Management

Asset/Liability Management

A technique companies employ in coordinating the management of assets and liabilities so that an adequate return may be earned. Also known as "surplus management."

Notes:

By managing a company's assets and liabilities, executives are able to influence net earnings, which may translate into increasing stock prices.

See also: Asset, Liability, Net Earnings, Return

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Asset/liability management

The task of managing the funds of a financial institution to accomplish two goals: (1) to earn an adequate return on funds invested and (2) to maintain a comfortable surplus of assets beyond liabilities. Also called surplus management.