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ALM addresses interest rate mismatch and liquidity risks through tools such as duration and convexity metrics, maturity bucket gap management and value at risk based

ALM addresses interest rate mismatch and liquidity risks through tools such as duration and convexity metrics, maturity bucket gap management and value at risk based concepts. For instance, rising interest rates can lead to losses on bank security instruments and on fixed-rate loans as the market values of these instruments fall.?

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