Asset Liability Management is one of the major functions of Union Bank Treasury. Union Bank has a highly efficient ALM Desk, which is an independent unit within the Treasury Department. Objective of the desk is to ensure efficient allocation of fund within an acceptable, measurable and defined risk structure. The desk monitor & analyzes various cash flows, cash positions, balance sheet gaps, daily Profit & Loss, economic trends, investment options, arbitrage opportunities, future business growth and place the facts & findings before the ALCO. Regular ALCO meeting is conducted once in month but incase of urgent situation special meeting is arranged. The desk proposes balance sheet strategy to the management.

Money market dealers arrange short and medium term funds at most economical terms which are required by the bank aside from customer deposit mobilization efforts. Money market desk ensures that the bank remains sufficiently liquid for meeting all its financial commitments and obligations to its customers besides meeting the CRR & SLR requirement at minimum risk and cost to the bank. In stress liquidity condition the desk always manages sufficient fund to provide business needs.

Union Bank has opened up a new chapter of measuring and reporting business performance through internal mechanism known as fund transfer pricing (FTP). FTP will provide useful business insights, increase efficiency of sourcing and using of funds and help identify the key drivers of profitability.

Bank rate has determined by the central bank for lending funds to commercial banks. It influences lending rates of among the commercial banks. Higher bank rate will translate to higher lending rates by the banks. In order to curb liquidity, the central bank can resort to raising the bank rate and vice versa. Union Bank Limited has set up its deposit and lending rate through ALCO Meeting.

Investment desk in Treasury Front Office operates within the policy frame approved by the Board of Directors of the Bank. The philosophy is to manage and maximize income within certain parameters and limits. It also includes use of effective duration, rate shock analysis, as well as total return to analyze and manage the investment portfolio and to determine the effect of movements on the yield and value of the bank’s portfolio. Investment desk operates within available investment opportunities in the country and abroad. The desk keeps an eye on the market movement to reap on every opportunity and to get the best of every penny invested and maximize profit as well as shareholder’s value.

Union Bank Forex Desk is one of the leading market maker in spot and forward transactions in inter-bank market. The Bank has good sources of Foreign Currency through its own export customers, Non-residence Remittances and local & multinational corporate houses remittances/exports. The Bank is also well equipped to price world major currency spot & forward prices. The Treasury is connected to the International Market through on-line Dealing Platforms of different international banks to quote very competitive prices on world major currency spot & forwards.

Union Bank treasury has a dedicated corporate sales desk that assists clients in managing their risk exposure as to minimize the impact of market volatility on the companies. This desk has play pivotal role especially forward market and contributed significantly to the bottom line of the bank.