Asset-Liability Management Committee (ALCO) is the core unit of a financial institution. So it is the basic need to form an ALCO to balancing the Asset- Liability Management. The ALCO will set a standard limits on borrowing in the
short-term
markets and lending long-term instruments
that controls
over
the financial risks and external events
that may affect the bank's asset-liabilities
position. It manages the risks to acceptable level by monitoring and sets
the
competitive prices between assets and liabilities
to
maintain the liquidity position of
the
company. Without an ALCO, a commercial bank may lose all positive
financial opportunities
and the bank must be faced by different types
risk
as like as financial crisis. So that it shout to be formed a ALCO for each commercial
bank to manage the vulnerable financial position.