Asset and Liability Management: The Banker’s Guide to Value Creation and Risk Control, Second Edition

Asset and liability management

To control profitability and risks, banks have set up an asset liability committee (ALCO). It usually includes the very senior management of the bank: president, chief financial officer, head of treasury, head of retail banking, head of corporate banking, chief economist and head of accounting and control. Some banks refer to this committee as GALCO (group asset liability committee) or ALMAC (asset liability management and action committee). Although the tasks involved – profit and risk control – are not new, the allocation of information, responsibility and accountability to senior management is a more recent phenomenon, ...