Asset Liabiity Committee (ALCO)

Glossary

Banking

Asset Liabiity Committee (ALCO)

A bank’s Asset-Liability Committee is responsible for all aspects of balance sheet management i.e. assets, liabilities and capital, ensuring the balance sheet is in good shape and complies with regulatory requirements re: liquidity, funding and capital. The ALCO typically has oversight of interest-rate and FX risk as well.

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