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Introduction

The Assets and Liabilities Management Committee (ALCO) of Myanma Tourism Bank (MTB) is a critical governance body responsible for overseeing the management of the bank’s assets, liabilities, and overall balance sheet. ALCO ensures that the bank operates within an appropriate risk framework while achieving sustainable profitability and maintaining financial stability.

Objectives

The primary objectives of the ALCO are to:

  1. Optimize the balance sheet structure to achieve financial efficiency.
  2. Manage liquidity to ensure the bank meets its obligations at all times.
  3. Mitigate risks related to interest rates, foreign exchange, and market fluctuations.
  4. Ensure regulatory compliance with all asset and liability management standards set by the Central Bank of Myanmar.

Key Responsibilities

The ALCO performs the following key functions:

Liquidity Management

Monitoring and maintaining adequate liquidity to meet operational and regulatory requirements.

Establishing contingency plans for managing liquidity crises.

Interest Rate Risk Management

Identifying and managing risks arising from changes in interest rates.

Developing strategies to protect the bank’s net interest margin (NIM).

Funding and Capital Allocation

Reviewing the bank’s funding mix and ensuring a diversified funding base.

Optimizing capital allocation to support growth while maintaining regulatory capital ratios.

Market Risk Management

Monitoring exposure to foreign exchange, market, and investment risks.

Recommending measures to mitigate market-related risks effectively.

Policy Development and Monitoring

Developing and implementing policies related to asset and liability management.

Regularly reviewing and updating policies to align with changes in market conditions and regulatory requirements.

Composition of ALCO

The ALCO is chaired by the Managing Director or a designated senior executive and includes members from key departments such as Treasury, Finance, Risk Management, and Credit. This multidisciplinary composition ensures that decisions are well-informed and balanced.

 

Meetings and Reporting

The ALCO meets monthly and as needed in response to emerging financial conditions.

The committee’s findings and recommendations are reported to the Board of Directors to guide strategic decision-making.

Commitment to Financial Stability

The ALCO of Myanma Tourism Bank is committed to maintaining financial stability, protecting the bank’s profitability, and safeguarding the interests of its stakeholders. By proactively managing the bank’s assets and liabilities, ALCO supports MTB’s mission to deliver sustainable value to its customers and shareholders.