This сhapter focuses on the assessment and management of ALM risks: liquidity risk and interest-rate risk. The first part is devoted to liquidity risk: various types of liquidity risk, its sources, measures, and the principles of liquidity risk management, as well as scenarios for stress...

The paper focuses on the interaction between the solvency probability of a banking firm and the diversification potential of its asset portfolio when determining optimal equity capital. The purpose of this paper is to incorporate value at risk (VaR) into the firm-theoretical model of a banking...

According to many authors, so-called “central planning” had disappeared from European countries by 1989. However, this is by no means certain. Many former centrally planned economies still engage in central planning, in both the private and public sectors. Moreover, there is a striking...