Are you a non-banking financial company seeking an NBFC asset liability management system to strengthen your entity’s financial health? Partner with Corpbiz and get expert-led support through our network of 500+ fintech consultants.
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The NBFC asset liability management system is a framework that helps non-banking financial companies to maintain financial stability by identifying and monitoring liquidity risks.
Proper alignment of assets and liabilities of the NBFC can effectively help the entity to manage its cash flow and mitigate risks, including credit, market, and interest rates.
Get expert guidance through Corpbiz experts for strategic development, policy drafting, risk management system implementation, IT infrastructure establishment, audit conduction, and annual report filing for assets under management for NBFC.
Asset liability mismatch in NBFCs is an unalignment of long-term goals against short-term borrowings, opening up the company to liquidity and interest rate risks. Mostly occurs when the entity uses short-term funding to finance long-term loans.
The benefits of the NBFC asset liability management system are as follows:
The asset liability mismatch identification system helps the NBFCs to identify and apply effective measures against financial, market, credit, and interest rate risks.
With the help of an asset classification and provisioning norms for NBFC, the non-banking financial companies can maintain financial stability by monitoring potential risks in real-time.
By proper implementation of the NBFC asset liability management system, you can comply with the Reserve Bank of India and increase credibility within the investor community.
You can optimize your capital and profits to support business expansion plans by maintaining the mandated capital adequacy ratios (CRAR) as required by the RBI.
Once you’ve established an NBFC asset liability management system, you can easily reduce liquidity risks that are associated with long- and short-term goals obligations.
It is through proper asset classification and provisioning norms for NBFC that you can grow your company by managing risks, seizing opportunities, and maintaining financial stability. It is one of the key benefits of NBFC asset liability management system.
With asset classification and provisioning norms for NBFC, you can establish confidence in stakeholders and customers through proper demonstration of your entity’s financial health and risk management policies.
The requirements of the NBFC asset liability management system are as follows:
The list of non-banking financial companies that need to resolve asset liability mismatch in NBFC management system is as follows:
The documents required for the NBFC asset liability management system are as follows:
Take Corpbiz’s expert assistance to establish an NBFC asset liability management system as described below:
Explain Your Financial Obligations
Contact us and explain your financial obligations to our consultants through the 30-minute free consultation.
Formation of the ALCO Committee
Once you sign up with us, we’ll help you create an asset liability committee and appoint the senior management to make strategic decisions for your NBFC.
Policy Drafting
We’ll draft policies to set a framework for asset liability management activities. The polices include credit, market, financial, liquidity, and interest rate.
Establishment of Information System
Our IT experts will help you develop and implement a system to store, collect, process, and analyze real-time data on assets and liabilities for accurate and timely information.
Identification of Risks
Once you’ve established a system for data collection, the next step is to identify the risks, including liquidity, market, credit, and interest rate. The software will provide your live updates on your assets and liabilities.
Management of Risk
After we’ve identified the risks, we’ll help you manage the same by applying GAP analysis and stress testing.
Strategy Planning
Apply the results of the analysis to develop strategies for the NBFC asset liability management system, capital adequacy planning, and profitability.
Continuous Monitoring & Review
Once the plans are drafted, we’ll assist you in continuously monitoring your assets and liabilities to assess the potential risks associated with them.
The asset liability management system functions as per the key pillars for asset classification and provisioning norms for NBFCs:
This includes analysis processes, such as GAP, stress test, risk-adjustment profitability management methods. The real-time collection of data on assets and liabilities helps companies obtain accurate and timely data. The information system includes cash inflows & outflows, LCR, and borrowing cost analysis.
Implementing and organizing an ALM framework mandates proper integration, strategic planning, and risk management. The ALM organization helps NBFCs to monitor and take effective measures against liquidity, market, credit, and interest rate risks. The ALCO is the authority that is responsible for financial stability through analysis of balance sheets and strategy formulation.
The liquidity risk management system must have policies that determine the goals, strategies, and risk tolerance. The policy must have components, including maturity profiting, a management information system, tools, and risk mitigation plans.
Scroll down and find out the features of the NBFC asset liability management system, which are as follows:
The NBFC asset liability management system framework includes liquidity & market risk, fund planning, and business projection:
To maintain a strong liquidity ratio, a non-banking financial company must ensure that it has sufficient funds to meet its short- and long-term financial obligations. Our financial analysts help NBFCs by monitoring the asset liability mismatches. We’ll help you conduct periodic assessments and stress tests to ensure you’ve enough funds in case of an economic downturn.
NBFCs that operate in foreign currencies in accordance with the FEMA and RBI regulations often face risk associated with fluctuating exchange rates. With the increase in globalization, our services help NBFCs to incorporate measures to manage such exposures through careful management.
The changes in the interest rate can happen due to market conditions or due to a change in the law by the government or regulatory bodies. Any sudden change can fluctuate the operational flexibility of the NBFC.
The inconsistency can modify the non-banking financial company’s net interest income. By conducting GAP analysis, simulations, and stress tests, we can assist you in identifying the risk beforehand.
This happens when the borrower fails to settle the debt or repay the loan. The non-payment of loans/interests, meaning an increase in the number of non-performing assets (NPA). To tackle these issues, our compliance associates conduct a thorough KYC and credit report of the borrowers in the market.
Our legal associates will help you in drafting the NBFC asset liability management system framework as per your company's requirements.
Assess your risks stress-free as per your short- and long-term obligations. We’ll help you develop strategies for maintaining adequate cash buffers.
Our compliance consultants will provide expert guidance in fulfilling your compliance obligations on time, stress-free.
By providing live tracking updates on your service requests, we help you implement the latest RBI and other regulatory developments in real-time.
Conduct stress test and audits with our licensed auditors with more than 12+ years of professional experience.
Now file error-free and remain stress-free by reporting your annual returns on time with the RBI.
Written by Aarya Pokharel. Last updated on Nov 11 2025, 09:47 PM
Aarya Pokharel brings 3 years of solid experience in legal research and compliance. Her expertise spans tax filing, secretarial compliances, and advisory services, with a strong focus on delivering precise legal research and strategic advisory support.
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