IDBI Bank addresses all forms of market risks, viz., liquidity risk, interest rate risk and foreign exchange risk through a well-defined set of policies and processes. Separate treatment is given to management of risks in trading book and banking book recognising their differential impact on the balance sheet. The trading book risks, which are more susceptible to market movements, are continuously measured and managed by marking the positions to the prevalent market rates. In order to assess the likely impact of market movements, periodic analysis of the trading book is carried out on the basis of positions based on changes in market rates, past trends, stress tests through rate shocks, scenario analysis, etc. The overall positions and functions of market risks are run under the policy framework defined in Asset-Liability Management (ALM) Policy, Market Risk Policy and Investment Policy.