Publisher Summary This chapter discusses asset & liability management (ALM), the control of value creation and risks in a bank. Unlike the usual practice of restricting ALM to the control of interest rate and liquidity risks, it proposes a framework to analyze both value creation and the control of risks. It provides a microeconomic-based valuation model of a bank. This allows an integrated discussion of fund transfer pricing, deposit pricing (fixed and undefined maturities), loan pricing, the evaluation of credit risk provisions, the measurement of interest rate risk for fixed and undefined maturities, the diversification of risks, and the allocation of economic capital. Besides a comprehensive summary of the literature on ALM in Banking, it makes six contributions related to transfer pricing, risk-adjusted pricing of loans, provisioning of credit risk, the relevant maturity to price and hedge deposits with uncertain maturities, the after-tax valuation of equity, and the hedging of economic profit.