2003 Committee Charter : FBF

Effective 02/18/2003
FLEETBOSTON FINANCIAL CORPORATION
FLEET NATIONAL BANK
Risk Management Committee Charter
PURPOSE
The Risk Management Committee shall assist the Board of Directors with its oversight of (i) the
processes for managing the Corporation's credit, price, interest rate, liquidity and foreign
exchange risks, (ii) the process for determining the adequacy of the Corporation's reserve, (iii)
the adequacy of the Corporation's capital levels and (iv) the performance of the Corporation's
internal risk review function.
COMPOSITION
The Risk Management Committee shall be appointed by a resolution passed by a majority of the
Board of Directors. A minimum of three members of the Board shall be selected to serve on the
Risk Management Committee. The Committee shall satisfy all requirements established by the
Securities and Exchange Commission and the New York Stock Exchange.
DUTIES AND RESPONSIBILITIES
In carrying out its purposes, the Risk Management Committee shall have the following duties,
responsibilities and authority.
Credit and Equity Portfolios
  • Oversee the maintenance of an effective process for managing risk in the Institution's
    credit portfolios, (e.g., the C&I, commercial real estate, consumer cross border and
    market risk portfolios) and Principal Investing business, including the adoption or
    amendment of appropriate policies and risk limits from time to time.
  • Monitor asset quality in the credit portfolios, portfolio composition, portfolio trends,
    risk diversification and country risk.
  • Monitor compliance with credit policies through the receipt of periodic reports of
    board reportable exceptions (including exceptions to supervisory limits on real estate
    loan-to-value ratios).
  • Oversee the maintenance of an effective process for determining the adequacy of the
    allowance for loan and lease losses and monitor the adequacy of the allowance for
    loan and lease losses.
  • Oversee the maintenance of a comprehensive independent internal risk review
    program for monitoring asset quality, ratings' integrity and credit process in the
    Institution's credit portfolios including review of significant risk review reports and
    management's responses.
    Price Risk
  • Oversee the maintenance of an effective process for managing price risk in the
    Institution's trading activities and accounts, including the adoption or amendment of
    appropriate policies and risk limits from time to time.
  • Monitor the management of price risk and receive reports on the foregoing.
    Asset Liability Management
  • Oversee the maintenance of an effective process for managing the Institution's
    interest rate risk, liquidity risk, foreign exchange risk and similar risks relating to its
    balance sheet and associated activities, including the adoption or amendment of
    appropriate policies, risk limits and capital levels from time to time.
  • Monitor the management of interest rate risk activities and the Institution's overall
    interest rate risk profile to ensure that the level of interest rate risk is within relevant
    risk limits.
  • Monitor liquidity management activities to ensure that actual and projected liquidity
    needs will be met and, at least annually, review the Institution's Liquidity
    Contingency Plan.
  • Monitor the Institution's capital management activities to ensure the capital levels are
    maintained in accordance with regulatory requirements and management directives.
  • Receive reports on the foregoing and periodically review such policies and approve
    any amendments.
    Daylight Overdraft Limits
  • Annually review management's self-evaluation of creditworthiness; operational
    controls, policies and procedures; and credit policies and procedures in formulating a
    sender net debit cap (i.e., the limit on the aggregate amount of risk that the Bank can
    present to the payments system from daylight overdrafts or through participation in a
    private large dollar network) and adopt a sender net debit cap.
  • Annually authorize intraday extensions of credit to affiliates.
    Reports To The Full Board
  • Report to the Board of Directors on a regular basis with such recommendations as the
    Committee may deem appropriate, so that the Board is informed of the Committee's
    activities.
    DELEGATION TO SUBCOMMITTEE
    The Committee may, in its discretion, delegate any portion of its duties and responsibilities to a
    subcommittee of the Committee.
    RESOURCES AND AUTHORITY
    The Committee shall have the resources and authority appropriate to discharge its duties and
    responsibilities under this charter. The Committee shall also have the authority to select, retain
    and terminate outside counsel or other advisors, as it deems appropriate, and to approve the fees
    and to determine the retention terms of such individuals, without seeking approval of the Board or
    management, which fees shall be at the cost and expense of the Corporation.