The main functions of mid-office can be summarized as under:
(i) Management of risks:
(a) Market risk which arises on account of:
– Interest rate movement
– Foreign exchange rate movement
– Commodity prices
– Equity prices (b) Liquidity risk
(c) Country risk
(i) Independent market risk monitoring, measurement, analysis and reporting for bank’s ALCO (Asset Liability Management Committee)
(ii) Formation of Investment policy for bank’s treasury
(iii) Formation of ALM policy for the ban
