3 Questions
What is the purpose of the Asset-Liability Management Committee (ALCO)?
To implement the liquidity risk management strategy of the bank
What is the difference between stock approach and flow approach in measuring liquidity risk?
Stock approach calculates ratios to compare to benchmarks, while flow approach looks at the liquidity requirements of different time periods
What is the role of the Asset Liability Management (ALM) Support Group?
To prepare forecasts and recommend action needed to maintain liquidity position
Test your knowledge on the governance of liquidity risk management with this informative quiz. Learn about the key responsibilities of the Board of Directors (BoD) and their role in deciding the strategy, policies and procedures for managing liquidity risk in accordance with the liquidity risk tolerance/limits. Understand the liquidity risk profile of banks and the overall management of liquidity risk. Brush up on your knowledge and stay up-to-date with the latest industry standards.
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