ALM focused on profitability of the Islamic bank by ignoring the risk occurred.

Value at risk related to risk of loss for investment

Good management of Asset Liability help the Islamic banks to ensure adequate liquidity for the operation.

ALM focused on current asset and current liabilities only.

Duration analysis can measures the change of valuation for asset and equity.

There are 4 procedures in managing liquidity for Islamic banks.

Liquidity of Islamic banks will be affected if the customer failed to fulfilled their monthly payment.

If the value of buildings owned by Islamic banks decline, its will directly affected the liquidity.

ALCO of Islamic banks responsible to find out the potential investor for the organisation.