Asset and Liability Management Committees (ALMCs) are responsible for overseeing the asset and liability management of a company or bank.
The ALCO at the board or management level provides important management information systems (MIS) and oversight for the effective assessment of the institution’s on-balance sheet and off-balance sheet risks.
Strategies, policies and procedures of the ALCO should be consistent with the goals, objectives and risk tolerance of the board of directors for operating standards.
One of the objectives of the ALMC is to ensure adequate liquidity in managing the bank’s spread between interest income and interest expenses.
– Analysts can estimate the demand for a product at any point on the demand curve. – Demand charts, used in conjunction with supply charts, provide a visual representation of the dynamics of supply and demand in the market.