The aim of this lecture is to present on Asset Liability Management; Determining and Measuring Interest Rates. Banks and many of their financial service competitors today are highly complex organizations, offering multiple financial services through multiple departments. Financial firms usually make the decisions about which customers are to receive credit, which securities should be added to or subtracted from the financial institution’s portfolio, which terms should be offered to the public on loans, deposits, investment advice and other services, and which sources of capital the institution should drawn upon.