Some of the different committee’s of a small community banks in USA-Robin Trehan, BA, MIB, MBA

Audit Committee – The Committee oversees the financial reporting and disclosure process. They oversee the hiring, performance and independence of the external auditors. They have oversight of the system of internal controls and compliance with laws and regulations. They review and approve all policies not related to credit or ALCO (asset-liability committee).

ALCO Committee – The Committee is responsible to oversee the implementation of an effective process for managing the bank’s interest rate, liquidity, and market risks related to the bank’s balance sheet and income statement. They are responsible for the budget process, review and approval. The committee oversees the investment activities. They approve policies related to ALM.

Loan Committee – The Committee is responsible for overseeing the quality of the loan portfolio. They monitor credit exposure through various reports such as but not limited to watch lists, concentration reports, past-dues and criticized and classified credits. They review, analyze and make decisions on loan requests based upon bank loan policies and sound management practices. They review and recommend approval to the board of directors the bank’s allowance for loan and lease losses. The committee ensures compliance with laws and regulations.

Consent Committee – The Committee reviews the bank’s compliance with the Consent Order. In case there is a MOU (Memorandum of Understanding) or consent order with the regulators.

Personnel and Compensation – The Committee oversees and evaluates the performance of the CEO and other senior officers of the bank.

M&A Committee- In case the bank is raising capital or is looking to sell it or merge with another bank or financial institution. M&A Committee members can be independent of the management of the bank.

Robin Trehan, BA, MIB, MBA