ALM, the Asset and Liability Management Unit, is responsible for the management of NIB’s market risks on the balance sheet. ALM also handles daily cash, including collateral management, and calculates transfer pricing between treasury and the lending operation.
In 2015, the bank disbursed new loans of EUR 2,716 million and obtained new funding of EUR 4,276 million in 11 different currencies.
Short-term money market instruments are used to manage the liquidity and daily payment obligations. The amount covers the expected net cash outflows of the forthcoming three months. Reverse repos are actively used by the ALM department to reduce the total treasury counterparty exposure. The instrument distribution is shown here:
Money market instruments in 2015
In total, the balance sheet increased from EUR 24,870 million at the end of 2014 to EUR 27,311 million at the end of 2015. Fluctuations in currency rates resulted in an increase of the amount of cash collateral received from EUR 832 million to EUR 1,449 million in 2015.
In 2015, ALM contributed EUR 30.8 million to NIB in net interest income earnings.