The Role of a Bank's Asset-liability Committee (ALCO)
A bank’s Asset-Liability Committee or ALCO is possibly the most important executive operating committee in a bank. Here, Moorad explains what ALCO is, outlines their responsibilities and provides some insight into their objectives and governance structure.
Overview
The role of a bank’s Asset-Liability Committee ultimately lies in managing the bank’s balance sheet and ensuring that the balance sheet shape and structure are robust and long-term viable.
Key learning objectives:
What is an ALCO?
What are the main responsibilities of an ALCO?
What should the ideal ALCO governance structure look like?
Summary
Expert
Moorad Choudhry
Former senior banker with almost 30 years experience. Moorad has held senior roles in commerical, investment and retail banking. He has also spent the last five years as a visiting professor.
