The Structure of Assets and Liabilities is the single most influencing factor of financials future performance. Shortcomings of traditional banking analysis are as follows:
- structure of balance sheet is not considered
- historical trends in lending and borrowing is not taken into account
- reserve for loan losses policy and dividend policy is omitted
Asset Liability Management analysis are very promising for the future. For selected financials the outcome of research is used to determine either Relative Value of Stocks or Comparable Bond Analysis myValue in case of Fixed Income Instruments.