We are working hard to maintain the best service we can for you. As you can imagine our telephone lines are exceptionally busy at the moment. So we are asking for your help too.
In the interests of the health of both our customers and our staff, please avoid visiting our branches unless necessary. Please telephone your local branch direct if you have any queries or to register to use our online services.
To reduce the risk to our branch staff and customers, from 1st April, branch opening hours will temporarily be reduced to 9am - 12pm Monday to Friday and closed on Saturdays.
We have also temporarily reduced our telephone opening hours at Principal Office to 9am - 3.30pm Monday to Friday and closed on Saturdays.
We apologise for any inconvenience this may cause.
There is some evidence that criminals are attempting to use the current COVID-19 situation as an exploitation opportunity, so please be extra vigilant before clicking on an email about the coronavirus outbreak. If a claim sounds too good to be true, it probably is...
Criminals use exceptional circumstances like the current situation as a chance to pose as employees of a genuine organisation such as building society, bank or police and target you for fraud scams. They may claim they are dealing with coronavirus-related issues that require you to respond by paying money or providing personal information that will allow them to access your account. They often use pressure tactics to stop you thinking about want they want you do for them.
To help you stay protected, here are some things that we will never do:
Please remain vigilant.
Stop – Take a moment to think.
Challenge – Don’t be afraid to ask questions or to say “No” and end the conversation.
Protect – Contact the building society or the bank from which you have made a payment immediately if you think that you have been the victim of fraud.
We understand that some customers may be worried about the effect that contracting the Coronavirus (COVID-19) could have on their finances, for example due to a drop in income as a result of contracting the virus or because of the measures imposed to stop it spreading. If you have any concerns about how this could affect you and your mortgage, please click here to read the leaflet produced by the Building Societies Association and National Debtline or please get in touch on 01664 414141.
Please click here to see a list of Frequently Asked Questions for our members.
The Melton Building Society
Download information as a PDF document.
The Assets & Liabilities Committee (“ALCO”) is an executive committee that reports into the Risk Committee.
The ALCO shall comprise of the following members or be as decided from time to time by the Board:
The Chairman of ALCO is appointed by the Board.
For a quorum to be established, a minimum of 3 of the above members must be present, one of whom should be a member of the Board.
Mini ALCO facilitates decision making between meetings. A minimum of 3 of the above members must be present, one of whom should be a member of the Board. Any decisions made by Mini ALCO are to be ratified at the following ALCO meeting.
The members as outlined above should normally attend meetings. In addition, other professional advisers and Society officers should be invited to attend depending on the agenda to be discussed. Any Non-Executive Director and representatives of the Group’s Internal Audit function may attend an ALCO without invitation.
Meetings should be held on a monthly basis, with no meeting held in August each year.
The Chairman of ALCO may also convene a special meeting of the Committee if, in his judgement, an issue arises that cannot wait until the next regularly scheduled meeting and the issue cannot be adequately dealt with via a quorum of ALCO members or the Mini ALCO.
ALCO has authority to make decisions on all areas identified within the Responsibilities section of this Terms of Reference, but at all times operating within the Group Risk Policy & Appetite, Financial Risk Management Policy and Group Lending Policy statements as they apply to those Responsibilities.
ALCO is further authorised by the Board to:
ALCO provides management oversight (first line of defence) for asset and liability management within the Group and ensures treasury and lending operations are conducted within the parameters of the Group Risk Policy & Appetite statement.
All risks associated with the Society’s business and operations are monitored by the Group’s first line Executive Committees, EXCO and ALCO. ALCO has specific responsibility for managing Mortgage and Treasury Credit Risk, Liquidity Risk, Interest Rate Risk, Pension Obligation Risk and specific areas of Business Risk consisting of all asset and liability product management (including related Conduct Risk matters), net interest margin management and capital management. All other risk categories are monitored by EXCO.
The purpose and objectives of ALCO have been established as below:
a) Recommend for approval by the Board the Financial Risk Management Policy, on at least an annual basis, including the review of all Financial Risk Management controls, policy limits and early warning indicators; and
b) Monitor activity under the scope of the Financial Risk Management Policy to ensure adherence to set policies and limits.
Since the Group does not have a separate credit committee, the Risk Committee places reliance on ALCO in the following areas:
a) Review on at least a semi-annual basis the authorised counterparties list, and recommend to the Board new additions to the list for approval;
b) Monitor adherence to counterparty credit limits set within the Financial Risk Management Policy;
c) Monitor the overall mortgage portfolio to ensure that the emerging risks and trends are identified and actions taken where necessary;
d) Monitor mortgage arrears and forbearance and authorise mitigating actions;
e) Monitor mortgage credit risk stress tests and ensure sufficient capital is held in aggregate to cover expected losses arising; and
f) Monitor activity under the scope of the Group Lending Policy and ensure adherence to set policies and limits.
a) Monitor mortgage concentrations (geographic and large exposures) and make recommendations to the Board regarding any changes to the Group Lending Policy.
a) Assess the adequacy of liquidity assets held by the Society, in terms of quality and quantity, in relation to both expected (cashflow forecast) and unexpected events;
b) Review liquidity stress testing results and ensure the scenarios remain appropriate;
c) Ensure the liquid buffer assets held are always in excess of the minimum set by the Board and the regulator;
d) Review the requirements for wholesale borrowing; and
e) Review and recommend for approval to the Risk Committee the Contingency Funding Plan on a periodic basis.
a) Set the funding strategy parameters for the Executive to implement;
b) Review the mix, stability and tenure of retail, wholesale and other funding sources; and
c) Monitor asset encumbrance and ensure this remains with limits set by the Board.
a) Agree the Group’s interest rate expectations. Consider and authorise any specific actions arising from this agreed interest rate view;
b) Monitor the gap analysis and ensure the Society keeps within the limits agreed by the Board;
c) Monitor the results of the gap analysis stress scenarios and ensure the scenarios remain appropriate;
d) Monitor the use of interest rate derivatives used in the management of interest rate risk;
e) Monitor the impact of basis risk on the net interest margin and authorise mitigating actions; and
f) Monitor the impact of early prepayments and mortgage pipeline and their effect on interest rate risk.
a) Review the Group’s net interest margin performance, including variances from plan, and authorise any specific actions arising;
b) Monitor the impact on net interest margin, profit and reserves from changes in the market value of liquid assets and derivatives;
c) Liaise with the Marketing and Sales functions in order to provide guidance on appropriate product mix and volumes;
d) Review and approve the pricing of new products within existing categories, including rates, fees or other product features;
e) Monitor product pricing and the assumptions used to price mortgage and savings products, including competitor analysis;
f) Consider the risk characteristics of new categories or classes of products prior to their approval by the Board;
g) Discuss and review trends in Government economic policy and economic conditions;
h) Monitor capital resources and capital requirements and ensure the Group’s capital risk appetite is adhered to; and
i) Monitor Recovery & Resolution Plan (RRP) Early Warning Signals (EWSs) and Invocation Trigger Points (ITPs) and ensure that any matters arising are highlighted to the Risk Committee and the Board.
a) Consider the conduct risk implications of changes to existing or new products and authorise any specific actions arising.
a) Monitor the pension scheme surplus;
b) Review the triennial scheme valuation and interim annual valuations, including their assumptions, and consider the need for any actions arising;
c) Review the results of stress tests on the pensions scheme surplus and consider any actions arising, particularly on capital adequacy; and
d) Review the pension scheme investments and consider any concentration risk both in isolation and together with the Society’s liquid asset investments.
a) Consider any training and development needs for ALCO members or those involved in asset and liability management to ensure the requisite skills are available to monitor and control all relevant risks;
b) Receive internal audit reports relevant to the Committee’s oversight responsibilities, including risk categories over which the Committee has oversight and the effectiveness of the Treasury control environment, and authorise any specific actions arising;
c) Review the Committee’s terms of reference annually and recommend any changes to the Board; and
d) Undertake an annual committee self-assessment.
a) ALCO shall also provide key management information to the Board on a regular basis (weekly ALCO dashboard);
b) ALCO holds a key role in liaising with the Board, the Risk Committee and the Audit & Compliance Committee and shall, as a minimum, provide these meetings with a written note of activities and key decisions made at each of its ALCO meetings.
In addition to the monthly business as usual items, the Committee will consider the following items at the meetings listed below:
January: Committee self-assessment
February: Financial Risk Management Policy review
March: Group Lending Policy review
April: Contingency Funding Plan review
May: Liquidity stress test scenario and assumptions review
June: Mortgage stress test scenario and assumptions review
July: Interest rate stress test scenario and assumptions review
August: No meeting
September: ALCO Terms of Reference review
October: Contingency Funding Plan test
November: Review of management information supplied to ALCO and other Committees
December: Product pricing model and assumptions