The Bank has an Asset Liability Committee (ALCO) which is responsible for maintaining short term &long term liquidity and ensure that the bank has adequate liquidity at all times at optimal funding cost. The other task of the committee includes Balance Sheet Structure & management, Capital adequacy, keeping available cushion to meet the risk and determination of lending and deposit pricing strategy. The assessment and control of liquidity are done through liquidity reports & financial statement.
Asset Liability Committee (ALCO) headed by Managing Director, is responsible for balance sheet risk management. The committee participate is the monthly ALCO meeting and review the liquidity position, review the profit rate on deposits & investment and review the Alco papers on presentation by treasury back office on the position of profit, deposit advance cost analysis maturity bucket of deposit & advance, balance sheet, profit & loss Account and many other issues relating to bank’s business and asset liability management. Five relevant divisional head including DMD are the members and FVP & Head of Treasury of the Bank is the member secretary of the committee.
3. Foreign Exchange Risk Management Market based floating exchange rate has been introduced both trading opportunities and foreign exchange volatility. There has thus risen a need for controlled management, through a single department of risk and at the same time to exploit the business potentials. The task of reconciliation fo all transaction initiated by Treasury Department, rest with a separate blocks office independent of treasury.
4. Internal Control & Compliance (IC&C) “The system of internal controls the plan of organization and all the methods and procedures adopted by management of an entity to assist in achieving management’s objective of ensuring, as far as practicable, the orderly bad efficient conduct of its business “From this definition, it can be seen that the objective of a system of internal control is to assist the management of an enterprise in the orderly and efficient conduct of its business. Objectives of Internal Control is following –
a. Adherence to policies and procedures laid down by management b. Safeguarding of assets c. Prevention and detection of fraud and error d. Accuracy & Completeness of records and timely preparation
The component of effective internal control I e effective information system is already in place from FSIBL’s perspective. The bank has further established the following internal control measures