20.1 Overview

Limit functionality is useful if you want to compare the reprice gap measures calculated by the ALM application with a limit set as per the risk policy of the bank. This is done to assess the current level of risk and take corrective actions when required.

Using this, you can define the following:

1. Set and monitor net repricing gap limit.
2. Set and monitor cumulative repricing gap limit.

   The limit can be defined in Amount or Percent terms and in base currency or in consolidated currency or both.

   Limits are defined at granularity of the following dimensions:

   • Legal Entity
   • Organization Unit
   • Currency
   • Time Bucket
   • Rate Scenario

Following ALMBI Reports are impacted:

• Repricing Gap Summary in Base Currency
• Repricing Gap Summary in Consolidated Currency
• Repricing Gap Across Dates in Base Currency
• Repricing Gap Across Dates in Consolidated Currency