c. myblog

February 17, 2011

Shifting Deposit Trends

Over the last couple years, credit unions have grown lower-cost deposits.  This growth has largely been the result of a flight to safety that has occurred due to the economic environment.  Certificates of deposit (excluding IRAs) have decreased from a high of about 28% of funding in late 2007 to about 24% as of 3rd […]

February 15, 2011

Deposit Pricing Lags As Rates Rise

Many financial institutions see an eventual rise in market rates as an opportunity to create greater margin between what they pay on their non-maturity deposits and what they can yield on their new and or variable-rate assets.  This idea is not new.  However, what is different is that many credit unions are building into their […]

February 4, 2011

How Will Corporate Restructure Change Short-Term Investment Strategies?

While much progress has been made toward a revamped corporate credit union system, uncertainty still surrounds the questions of which corporates will emerge and what products and services they will offer.  One thing that does seem certain, though, is the eventual lifting of the Temporary Corporate Credit Union Share Guarantee Program (TCCUSGP). The TCCUSGP is […]

January 28, 2011

Threats To Interchange—More Than Just An Income Issue

The financial services industry is still holding its breath awaiting the repercussions of the Durbin Amendment reforming debit interchange.  The initial threat for which many are preparing is a material reduction in non-interest income.  Although the amendment exempts financial institutions with less than $10 billion in assets, opponents argue that merchants will (of course) coerce […]

January 20, 2011

When Will Loan Demand Pick Up?

This is the question at the forefront of many people’s minds—particularly as loan balances continue to decline and deposit costs move closer to their floor.  It’s a great question but impossible to answer with certainty.  Since our crystal ball is as cloudy as the next, perhaps a better way to approach the question is to […]

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