The Asset and Liability Management Committee (hereinafter “the Committee”) is responsible for making business decisions (on matters within its competence) and preparation of proposals for the Management Board on matters demanding its resolution. The Committee is accountable to the Bank’s Management Board.
Functions
The Committee shall perform the following functions:
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development of proposals for the Bank’s Management Board and business decisions related to the management of the Bank’s balance sheet and its financial results. In doing this, the Committee shall take into consideration the Bank’s strategy, its business plans and annual budget, maximum acceptable risk level determined by the Bank’s Management Board, sufficiency of the Bank’s resources for implementation of the business decisions, the necessity of resource allocation, first and foremost for priority lines of activity, ensuring attainment of the set goals and preserving the stable financial status of the Bank;
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development of proposals for the Bank’s Management Board on risk tolerances for the Bank;
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monitoring and analysis of market risks, liquidity and funding status taking into account the changing operation environment of the Bank, the requirements of regulatory bodies, recommendations of international authorities for banking regulation and supervision, international banking expertise and best practice;
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monitoring of procedures for preparation and delivery of internal management accounting in the Bank, ensuring timely submission to the Bank’s Management Board of management information on matters related to the activity of the Committee;
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consideration and submission to the Bank’s Management Board of new products (in compliance with the Procedure of New Products Approval adopted by the Bank’s Management Board);
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preparation of proposals for the Bank’s Management Board on resolution of disputable matters regarding allocation of resources that are in short supply.
Responsibilities
The Committee shall have the following key responsibilities:
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management of market risks within maximum acceptable risk level approved by the Bank’s Management Board;
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control and review of management information related to assets and liabilities of the Bank, and its financial results;
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control over the Bank’s activity aimed at attracting funds, determination of the most efficient forms and structure of funding in order to ensure stable inflow of funds;
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annual review of the Liquidity Management Policy and its submission to the Bank’s Management Board for approval;
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monitoring of the Bank’s liquidity situation to ensure sufficient liquidity at any time and compliance of the actual liquidity level with the approved Policy;
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annual review of the Trading Portfolio Management Policy and its submission to the Bank’s Management Board for approval, as well as control over its execution;
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review and preparation of proposals for the Bank’s Management Board on the management of investment or any other asset portfolio that the Committee may manage from time to time;
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review, in line with the Bank’s internal control system (on matters within the competence of the Committee), of information obtained as a result of external audits.
Frequency of meetings
The Committee shall hold its meetings as necessary, but in any case at least once a month.
Composition
The following officials shall be members of the Committee:
First Vice President – Deputy Chairman of the Management Board supervising the Treasury, Risk Management, Planning and Finance (Chairperson of the Committee);
Senior Vice President – Member of the Management Board supervising the Planning and Finance;
Head of the Treasury;
Head of the Risks and Analysis Division;
Senior Vice President supervising the operation of business units;
Head of the Structured Finance and Syndicated Lending Division.
The quorum is formed by 4 members of the Committee, one of whom has to be the Head of the Risks and Analysis Division or his/her Deputy.
In case of their absence, members of the Committee should appoint proxies for participation in meetings.
The Chairperson of the Committee shall appoint on a permanent basis the Secretary of the Committee and his/her Deputy (without vote).
Members of the Management Board who are not members of the Committee shall have the right to participate in all meetings without vote.
Heads of Bank units may be invited for consideration of certain individual matters.
Voting
Voting on matters submitted for consideration of the Asset and Liability Management Committee may be performed during a Committee meeting in presentia, via absentee vote (questionnaire voting) or through electronic voting in the Portal.
Decisions shall be made by simple majority of votes. In case of an equality of votes, the Chairperson of the Committee shall have a casting vote.
Documents
The Secretary of the Committee shall prepare the agenda and a collection of information materials on a monthly basis. The agenda and the information materials shall be distributed to the members of the Committee at least two days before the meeting. The agenda and the information materials shall also be sent to Members of the Bank’s Management Board who are not members of the Committee.
All documents presented have to be fully discussed by all interested parties before their presentation and should contain relevant recommendation for the Committee to make a decision. The Chairperson of the Committee shall have the right to decline any documents that, in his/her opinion, fail to meet the required standards.
The Secretary shall keep the minutes of the meetings. Draft minutes and their final versions shall be distributed to the members of the Committee.
The Secretary of the Committee, on the instructions of the Chairperson of the Committee, shall, at least once a quarter, submit to the Bank’s Management Board a memorandum on the activities of the Committee.
