Financial Risk Management in Banking is an excellent introduction to asset-liability management (ALM) for commercial banks. Topics include: risk, capital regulation, loan pricing, gap analysis, simulation models, duration, asset securitization, transfer pricing, and so much more. The scope extends beyond interest rate risk to include credit risk, liquidity risk, exchange rate risk and other risks. The role of an asset-liability manager is discussed as well as the need to develop a comprehensive strategy.

The books treatment of bank capital requirements is not reflective of the current Basle regime. I continue to recommend the book because fundamental issues have not changed, and the book's discussion of those fundamental issues is excellent.

This is an elementary, highly structured and practical introduction to ALM for commercial banks.