If Asset Liability Committees met more frequently, not only would they be able to better manage liquidity and risk, they could even improve overall bank operations.

The first step to having weekly meetings instead of quarterly would have to be to create an effective dashboard giving deep insight on the liquidity situation for the bank.

Simply looking at this on a weekly basis would give the bank a much better pulse on how the business is doing.

All from a weekly check-in on a simple dashboard.

Within a few months, this team could properly direct the sales team on which products the bank needs.

They could direct the relationship management teams on what deposits they should be seeking.

They could discuss with the risk management team whether there is a way to hedge some interest rate or duration mismatches.

And they would have more insight than anyone on the state of the business.

Suddenly ALCO is no longer just about managing risk,

It’s about directing the bank forward in the most effective way possible.

Now is a better time than ever to implement this change.

Any bank that does it will have a much easier time weathering this economic storm.

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Digging deep on banks is what I do.

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