The Asset/Liability Committee: What Regulators Want and What Board Members Need to Know

While figuratively speaking all roads lead to Rome, in the banking world they do in fact lead to the ALCO (Asset/Liability Committee).  The group responsible for the coordinated oversight of balance sheet risk management has evolved into perhaps the most important operating committee of a bank.  This fact has not been lost on the regulatory community as examination/supervision has delved into ALCO-related activities with substantially greater breadth and depth than we have ever witnessed. As a result, bank directors are thirsting for more education on ALCO-related activities and are becoming increasingly involved in the ALCO process. The purpose of this...