c. myblog

November 15, 2010

Do Lower PLL Ratios Mean The Credit Crisis Is Over?

On the surface, recent credit union provision for loan loss (PLL) trends seem encouraging; industry-wide through second quarter 2010, the ratio of PLL to average assets has declined by 31 basis points to an annualized ratio of 0.81%.  However, delinquencies and charge-offs as a percent of loans have only decreased by 11 basis points and […]

November 4, 2010

Hope For The Best, Budget For Reality

Recently, during The Economist’s Buttonwood Gathering, Raghuram Rajan, current professor at the University of Chicago’s Booth School of Business and former chief economist at the IMF, expressed concern over our government’s need to address the deficit.  Rajan stated that, “We need to have a path which brings [the deficit] under control.  It’s very important to […]

October 29, 2010

Does Your NEV Analysis Really Capture Fair Value Of Assets?

If your credit union runs a Net Economic Value (NEV) analysis as part of the A/LM process, how do you determine the credit union’s loan discount rate assumptions? Sometimes we hear credit unions say that their current loan offering rates are used as the discount rates in their NEV models.  We do not believe this […]

October 15, 2010

The New Word of Mouth: Revolutionizing How Younger Members Find You

Nobody will argue that the way we search for information over the last 10 years has changed dramatically.  Gone are the days of bulky Yellow Pages and encyclopedias; if someone—especially the younger generation—wants information, they turn to search engines.  According to the Pew Internet & American Life Project (January 2009), 87% of Gen Y use […]

October 7, 2010

43.4 Million People…

Consider that… “25.5% of consumers, nearly 43.4 million people now have a credit score of 599 or below.” Who knows where credit ratings will be when the economy settles down.  We think it would be helpful for decision-makers to have a strategic discussion on the role credit scores will play in lending decisions: Will the […]

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