Regulatory Alerts2013-10-01
SBD Opinion 2013-01 Guidance on Investment Governance and Analysis
The State Banking Department of Alabama issues this guidance to clarify Regulation No. 1 requirements for bank board-established investment policies, including mandatory portfolio limits and risk assessment methodologies. The document mandates robust pre-acquisition and post-acquisition analysis procedures for various asset classes, specifying concentration thresholds and detailed review criteria for securities such as municipal obligations, corporate debt, and asset-backed securities. Additionally, it permits the use of fixed-rate annuities for hedging employee benefits under strict compliance with capital, liquidity, and credit exposure limits.
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