c. myblog

November 7, 2013

Project Management Closure: A Key Strategy For Future Success

The final step in an effective project management life cycle, often forgotten or neglected by project teams, is Project Closure. Let’s face it: few projects are executed without at least a few “hiccups” along the way. Project management can be more art than science in some instances; there isn’t always one “right” way to proceed […]

October 31, 2013

All Sources Of Liquidity Cost Something – But Which Impacts Net Worth Ratios The Least?

As credit unions develop contingent funding scenarios to test against contingency funding plans, the solution to a liquidity event is perhaps as important as ensuring the scenario is both realistic and rigorous. In working with various credit unions, solutions to liquidity scenarios range from CD promotions to brokered (non-member) deposits to borrowings and lastly, to […]

October 24, 2013

Interest Rate Risk and Member CD Early Withdrawals

An important component of A/LM modeling that some interest rate risk (IRR) models ignore is applying early withdrawal assumptions to Member CDs. This is especially true for credit unions whose members are rate sensitive and/or accustomed to higher rates. If models do not consider early withdrawals, the benefit of longer-term CDs can be materially overstated […]

October 17, 2013

Can Your Credit Union Absorb A Change to NCUA Risk-Based Net Worth Requirements?

Debbie Matz, NCUA Chair, recently announced in The NCUA Report that “NCUA staff is developing an approach targeted to the types of risk held by different credit unions. A net worth ratio of 7 percent would remain the floor… However, credit unions with assets over $50 million would be subject to improved risk-based capital requirements. […]

October 10, 2013

Increase In Intermediate- And Long-Term Rates, Potential Increase In Risk-Based Net Worth Required

With the change in intermediate- and long-term rates since the last Call Report cycle ending June 30, 2013, credit unions may find that the reported weighted-average life (WAVG life) of their investment portfolios has changed. This may be true even if no new investment purchases were made. This change in reporting on the 5300 will […]

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