c. myblog

August 26, 2010

Rate of Growth and Loan Concentration Limits

As you consider establishing concentration limits on loans, it is important to know how the rate of growth could impact risk. We understand that loan growth is anemic for many financial institutions.  However, at some point, loan demand will increase and the rate of growth is something decision makers will need to consider.  In fact, […]

August 17, 2010

“I Want To Grow Our Investment Portfolio”

At the moment, there aren’t many credit unions that would make this statement.  Net interest margins continue to be squeezed by the extended low rate environment.  Deposit pricing is nearing the bottom, but there’s still plenty of room for loan and investment yields to decline.  It’s no different for big banks.  Just from the first […]

August 5, 2010

Chinese Rating Agency Downgrades U.S. Credit Rating

Chinese rating agency Dagong Global Credit Rating Co., known in China for rating companies, recently issued credit ratings for 50 countries for the first time. (Dagong’s Report) Below is an excerpt of the top 20 nations rated: Perhaps the most notable was the downgraded AA rating given to the U.S.—two levels below the top grade.  […]

July 29, 2010

When Stress Tests Aren’t Stressful

The recent news about the European bank stress tests has us thinking about when a stress test isn’t a stress test.  By now, you may have heard that out of the banks tested, 7 out of 91 failed the “stress tests”.¹  That is a 92% pass rate, and should earn the European banking system an […]

July 21, 2010

Loan Concentration Risk Survey

In our continued efforts to help the credit union industry, we are currently gathering information on how credit union executives view loan concentration limits in light of NCUA Letter to Credit Unions 10-CU-03 on Concentration Risk. We encourage executives to complete the following short, two-question survey: c. myers loan concentration risk survey Please note that […]

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