Common use of ASSET/LIABILITY MANAGEMENT Clause in Contracts

ASSET/LIABILITY MANAGEMENT. (1) Within sixty (60) days of the date of this Agreement, the Board shall adopt, implement, and thereafter ensure Bank adherence to a written, coordinated asset/liability management strategy. This strategy should: (a) provide for adequate management reports that enable the Board and management to monitor the Bank's liquidity position and maintain liquidity at an adequate level. These reports should: (i) include compliance with all policy limits; (ii) be presented to the Board monthly; (iii) include a prospective, rolling 30, 60, 90, 120, 150 and 180 days Sources and Uses Report that reflects anticipated shortfalls and probable funding sources; (iv) include a rollover risk analysis; (v) identify and quantify funding concentrations and collateral positions; and (vi) identify key, early warning indicators that would trigger a more in- depth analysis. (b) quantify growth plans; (c) identify and prioritize funding sources, including the use of brokered deposits; (d) establish limits for the amount of retail deposits, asset growth, and brokered deposits as a percent of total assets; (e) revise the Asset Liability Management policy to include: (i) guidance on monitoring and reporting the items in (a) through (d) of this Article; (ii) limits for rollover risk and collateral positions; and (iii) minimum net liquid assets to liabilities ratios. (f) review the current loan to deposit (LTD) ratio and determine if an adjustment is needed. Any adjustments to the LTD ratio should be included in the Asset Liability Management policy; (g) ensure Asset Liability Committee (ALCO) participation and concurrence for funding strategy changes; and (h) revise the Contingency Funding Plan (CFP) to: (i) identify liquidity crises that are relevant to current balance sheet composition and strategies; (ii) ensure crisis scenarios identify trigger points for actions that should be taken in advance of reaching the crisis; and (iii) include severity and duration components and the related impact on funds availability. (2) Upon adoption, a copy of the written strategy shall be forwarded to the Assistant Deputy Comptroller for review and prior written determination of no supervisory objection. Upon receiving a determination of no supervisory objection from the Assistant Deputy Comptroller, the Bank shall implement and adhere to the strategy. (3) Copies of the liquidity reports outlined in this Article shall be forwarded to the Assistant Deputy Comptroller in the Bank’s quarterly report. (4) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the policy developed pursuant to this Article.

ASSET/LIABILITY MANAGEMENT. (1) Within sixty (60) days of the date of this Agreement, the Board shall adopt, implement, and thereafter ensure Bank adherence to a written, coordinated asset/liability management strategy. This strategy should: (a) provide for adequate management reports that enable the Board and management to monitor the Bank's ’s liquidity position and maintain liquidity at an adequate level. These reports should: (i) include compliance with all policy limits; (ii) be presented to the Board monthly; (iii) include a prospective, rolling 30, 60, 90, 120, 150 and 180 days Sources and Uses Report that reflects anticipated shortfalls and probable funding sources; (iv) include a rollover risk analysis; (v) identify and quantify funding concentrations and collateral positions; and (vi) identify key, early warning indicators that would trigger a more in- depth analysis. (b) quantify growth plans; (c) identify and prioritize funding sources, including the use of brokered deposits; (d) establish limits for the amount of retail deposits, asset growth, and brokered deposits as a percent of total assets; (e) revise the Asset Liability Management policy to include: (i) guidance on monitoring and reporting the items in (a) through (d) of this Article; (ii) limits for rollover risk and collateral positions; and (iii) minimum net liquid assets to liabilities ratios. (f) review the current loan to deposit (LTD) ratio and determine if an adjustment is needed. Any adjustments to the LTD ratio should be included in the Asset Liability Management policy; (g) ensure Asset Liability Committee (ALCO) participation and concurrence for funding strategy changes; and (h) revise the Contingency Funding Plan (CFP) to: (i) identify liquidity crises that are relevant to current balance sheet composition and strategies; (ii) ensure crisis scenarios identify trigger points for actions that should be taken in advance of reaching the crisis; and (iii) include severity and duration components and the related impact on funds availability. (2) Upon adoption, a copy of the written strategy shall be forwarded to the Assistant Deputy Comptroller for review and prior written determination of no supervisory objection. Upon receiving a determination of no supervisory objection from the Assistant Deputy Comptroller, the Bank shall implement and adhere to the strategy. (3) Copies of the liquidity reports outlined in this Article shall be forwarded to the Assistant Deputy Comptroller in the Bank’s quarterly report. (4) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the policy developed pursuant to this Article.