Asset Liability Management (ALM) Review

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Asset Liability Management Review

CUACG has become increasingly aware that examiners have raised their focus on Asset Liability Management (ALM) in recent years. CUACG has developed a review to help the credit union to determine if management is adequately monitoring liquidity and if the Board is receiving accurate information to support sound practices and decisions. The review assesses the extent to which liquidity risk management complies with both supervisory guidance and sound industry practices, considering the level of sophistication and complexity of the credit union’s liquidity profile.

The procedures for the review are as follows:

  • Verify policies provide for adequate corporate governance including management’s adherence to the policies and procedures
  • Determine that policies and procedures provide for documentation of all information included in regulatory guidance
  • Determine that comprehensive liquidity risk measures and monitoring systems are employed that are appropriate for the size and complexity of the credit union
  • Review the Contingency Funding Plan adequacy, policies, and procedures
  • Review the funding mix utilized is appropriately diverse for existing and future potential sources
  • Verify that liquidity, cash flow, and associated reports are calculated correctly and review supporting source documents
  • Review third party ALM testing

Ensure your ALM compliance today by contacting us to get started with your review!

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Important Message

You are now leaving the Credit Union Auditing & Compliance Group's website. When you click on OK you will be transferred to a website that is not operated by the organization. The Credit Union Auditing & Compliance Group is not responsible for the content on the alternate site. Credit Union Auditing & Compliance Group does not represent the third party. Privacy and security policies of the alternate site may differ from those practiced by the organization.


Important Message

You are now leaving the Credit Union Auditing & Compliance Group's website. When you click on OK you will be transferred to a website that is not operated by the organization. The Credit Union Auditing & Compliance Group is not responsible for the content on the alternate site. Credit Union Auditing & Compliance Group does not represent the third party. Privacy and security policies of the alternate site may differ from those practiced by the organization.