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11 February, 2022

Highlight the role and responsibilities of ALCO for proper functioning of a bank

 The key roles and responsibilities of the ALM Desk:

1) To assume overall responsibilities of Money Market activities.

2) To manage liquidity and interest rate risk of the bank.

3) To comply with the local central bank regulations in respect of banks statutory obligations as well as thorough understanding of the risk elements involved with the business.

4) Understanding of the market dynamics i.e competition, potential target markets etc.

5) Provide inputs to the Treasurer regarding market views and update the balance

sheet movement.

6) Deal within the dealer‘s authorized limit.