Abstract
M.Com. (Economics)
The aim of this study is to identify the various monetary variables
financial risks involved in the structuring of the Asset and Liability
portfolio of a bank and to establish their influence on a dynamic financial
system. The implementation of a successful Asset and Liability
management plan is the ultimate objective of trying to maximize capital
gains. Therefore, the success of such a management plan lies in its
ability to limit the exposure of the bank to financial risks and monetary
variables and finally to increase profitability. In this study an attempt
is made to create a portfolio management plan. For this purpose a linear
optimization computer nodal, is used.
In order to obtain better understanding of the financial system in 'which
such a portfolio management plan is implemented, a description of both the
international and local financial systems ,including a comparison between
the South African and United States markets,is set out in this study.
In chapter V the strategy to limit financial risk exposure used in the
United States' is discussed. Following a comparison made between the
workings of the South African and United States financial markets, the
conclusion is that, given a few adjustments, the same strategy could be
used in the South African financial system...