Reimagine ALCO Strategies in the Current Environment


The perfect storm of events has shaken up the banking world and created one of the most challenging environments in many bankers’ careers. After managing through the lowest rates in decades and experiencing an unprecedented historical deposit surge creating an excess liquidity crisis, now an inflation-driven “shocked” rate environment is turning the liquidity and deposit picture upside down. Interest rate risk, unrealized losses and capital pressures are causing bankers to make difficult decisions to mitigate balance sheet risk exposures. The level of balance sheet risk has become elevated with a high degree of uncertainty for any relief on the horizon.

ALCOs can and should attack balance sheet challenges head-on. Although ALCO meetings are often thought of as backward-looking, “check the box”, and regulatory driven, now is the time to “Reimagine ALCO.”

Join Darling Consulting Group for this strategically focused presentation. The session will cover two themes: first, sharing specific strategy ideas and case studies to address today’s balance sheet challenges; and second, sharing ideas to transform ALCO into a profit center.

Highlights include:

  • Case studies and strategies in this Fed tightening environment
  • Deposit & funding considerations as rate competition intensifies (supported by data analytics)
  • Balancing near-term risk to rising funding costs vs. long-term risk of falling rates, dictated by today’s inverted curve
  • Ideas to develop a strategically focused ALCO meeting
  • How to make the complex simple – to tell your ALCO story

Frank Farone
Managing Director
Darling Consulting Group