Course objective is to provide necessary knowledge related with financial management that has been important especially for the last 30 years. From the banks point of view asset and liability managemet has been central issue of financial management. Asset management consantrated on loans while liability management consantrated on deposits.

Banks have term structure differencies between deposits and loans that cause interest rate risk. On the other hand, there are exchange rate risks on fx loans. Those type of risks have made the risk management important for banks. In this framework, we aim to explain risk and types of risks and asset - liability management of the banks in this lecture.