- 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.