Read article (as I do for all of Mark's articles here and on the DCG website). Agree with all his assessments.
I fear though that we may become paralyzed by analysis and start to lose the big picture of keeping banking
on the road and not off the paths of "what if's" and "most drastic outcomes" which may have little or no probability of happening.
It would be like us doing 100% loan reviews every month and trying to determine "what we don't know". ALCO should be
like the dashboard on your car. All systems running ok (any above/below the line? why?) What would our progress be if
we sped up a little more or slowed down? Take a different route. In the end, it has to come to a conclusion of continue on, change or stop.
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Jon Drake
Senior EVP & CFO
Peoples Bank
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Original Message:
Sent: 11-14-2018 14:30
From: Barb Rehm
Subject: Integrate and Recharge your ALCO Process
Peer Intelligence members get an exclusive first look at an analysis of ALCO best practices by Mark Haberland, a managing director of Darling Consulting. "Integrate and Recharge your ALCO Process" provides a roadmap to bankers seeking answers these key questions:
- How well do you really know your deposit base?
- Do you know how much liquidity you have? How much you need? What could change that?
- How does your interest rate risk profile affect your decision making?
- Is your ALCO meeting a vehicle that facilitates strategic discussion and decision making or a
compliance-focused "check the box" gathering?
Let us know what you think of Mark's article.
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Barb Rehm
Senior Managing Director
Promontory Interfinancial Network
Arlington VA
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