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#44414 - 11/20/02 05:39 PM Asset/Liability Committee
straw Offline
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straw
Joined: Nov 2002
Posts: 9,121
Is there any requirement that Board members sit on the asset/liability committee of a financial institution?

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General Discussion
#44415 - 11/20/02 06:06 PM Re: Asset/Liability Committee
BANNED BY BOL MANAGEMENT Offline
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BANNED BY BOL MANAGEMENT
Joined: Oct 2002
Posts: 524
Funds Management is a primary Committee of the Board, equal to the Audit, Loan, and Executive Committees. I cannot cite a regulation, but there are normally four basic committees, as noted, with additional committees added to support board level activities.

The ALCO Committee can be only management people with that group reporting to the Funds Management Committee on a periodic basis.

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#44416 - 11/20/02 09:42 PM Re: Asset/Liability Committee
NMB Offline
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Joined: Jun 2002
Posts: 255
Southeast Michigan
Our ALCO is made up of just bank management. It sets rates and earnings credits, reviews new product scenarios, and monitors peer group margin comparisons. Its actions are summarized and reported to the board.
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#44417 - 11/20/02 10:05 PM Re: Asset/Liability Committee
EllenA Offline
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EllenA
Joined: Nov 2002
Posts: 598
Flushing, NY
According to the OCC Directors Handbook, there are only two committees required by regulation- the audit committe (for banks over $500 million) whose membership should be only outside directors, and a trust audit committee for banks with trust powers. The Book mentions other committees that are recommended, including the Asset/Liability Committee but does not give any qualifications for membership. I am at a very small, family owned bank and our Investment Committee handles Asset/Liability matters. It is comprised of the entire board (all seven of them-three of them owners) and our Controller. If you're a National Bank, check out the Directors Handbook -- it has a lot of good info.



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#44418 - 11/21/02 08:07 PM Re: Asset/Liability Committee
CSpellman Offline
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Joined: Nov 2000
Posts: 176
There is a very good discussion about ALCO membership in the November issue of the ABA Banking Journal (page 22-26).
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#44419 - 11/21/02 08:31 PM Re: Asset/Liability Committee
Nanwa Offline
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Nanwa
Joined: Oct 2001
Posts: 5,564
Clintonville, WI, USA
I don't think there's a requirement, but it sure helps if a few board members are on it, just to keep communication open.
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