Key Supervisory and Regulatory Initiatives INSPECTIONS AND SUPERVISORY REVIEWS Inspections on Asset-Liability Management In view of rising interest rates and market volatility, MAS conducted thematic inspections of the asset-liability risk management processes and procedures of banks with significant balance sheets. The inspections assessed the effectiveness of the Board and senior management’s oversight of balance sheet and investment activities. They also covered the adequacy of the banks’ asset-liability management framework and controls. The inspections revealed that the banks generally responded well to changes in market conditions and had in place adequate risk management systems and controls relative to their sizes, complexities and risk profiles. While some weaknesses were noted in the risk capture and measurement, as well as performance evaluation processes and techniques, banks were able to promptly rectify them.