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Finance & Banking vocabulary · Treasury & Markets

Asset-liability committee

Meaning in finance & banking, with examples

nounAdvanced term

In finance & banking, asset-liability committee means: A management committee overseeing the balance sheet's funding, liquidity and interest-rate profile.

In Turkish: aktif-pasif komitesi

How it is used

Often abbreviated ALCO; its precise responsibilities depend on the bank's governance arrangements.

Example sentences

  1. The asset-liability committee approved the quarterly funding plan.

    The committee coordinates funding decisions across the balance sheet.

  2. Treasury presented interest-rate scenarios to the asset-liability committee.

    Risk analysis informs collective balance-sheet management decisions.

Common collocations

  • asset-liability committee meeting
  • ALCO approval
  • treasuryThe department of a bank or company that manages its cash, liquidity, funding, foreign exchange and interest rate risk; also the government ministry in charge of public money.
  • risk appetiteThe amount and type of risk an organisation is willing to accept in pursuit of its goals, usually approved by the board and expressed as limits.

More terms: Treasury & Markets

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This page explains English vocabulary for learners. It is not financial advice.