c. myblog

June 19, 2014

Lending Process Improvement: New Processes, New Problems, New Solutions

Understanding a baseline for any process you are improving is critical for tracking changes, progress and, ultimately, the success of the endeavor. Further, tracking progress and understanding trends will help ensure a new process is “under control” and that any unintended consequences are recognized and addressed. In this example, a credit union is improving its […]

June 12, 2014

We Are Outside of Our A/LM Risk Limits. Should We Change Them?

There is tremendous pressure on earnings from increasing costs due to regulations, compliance, technology and delivery channels to name a few. Margins are also tighter than in the past. To help compensate for reduced profitability, credit unions often take on more risk, such as interest rate risk and credit risk, to protect current earnings. However, […]

June 5, 2014

Net Economic Value and Business Decisions: Do You Understand the Trade-Offs?

As a result of running a net economic value shares at par analysis, it appears that some examiners are trying to force credit union CEOs and CFOs to reduce interest rate risk in a rising rate environment by selling assets. While we won’t argue that some credit unions should consider reducing interest rate risk, using […]

May 29, 2014

Cost of Funds: Pulling Together Deposit Assumptions

There is a lot of debate on the mathematics and methodology for deposit withdrawal speed and deposit pricing assumptions in different rate environments. Let’s step back for a moment and first ask the question: What is the objective of developing the deposit assumptions? Ultimately, the end objective of these assumptions is to arrive at a […]

May 23, 2014

Process Improvement: Are You Getting Your Desired Results Out of New Systems?

Many credit unions have implemented new loan origination and/or new account opening systems. While these new systems can absolutely enhance consumer experience, save time and drive better performance, we sometimes find that old processes remain in place when new systems are launched. If your credit union has implemented new systems and has not achieved desired […]

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