The sample policies below are designed to provide you with a structured format to organize and develop your internal financial risk management guidelines.
Asset/Liability Management Policy
The purpose of this policy is to set forth operating parameters and procedures that guide the administration of a bank’s asset/liability management function. A bank should view Asset/Liability Management (ALM) as the ongoing process of formulating, implementing, monitoring, and revising asset/liability allocation strategies to achieve the bank’s short-term and long-term financial objectives in concert with identified risk tolerances and constraints. The procedures set forth in this policy will be followed by Performance Trust’s operating personnel when implementing a bank’s ongoing ALM objectives and strategies.