c. myblog

June 3, 2010

Are Your Members Sending You A Signal?

According to NCUA’s first quarter data, shares grew an average of almost 11% (annualized) while loan growth declined 4.76% (annualized)─over a 15% differential.  Funds not loaned out are sitting in investments (generally not earning very much) and are putting a squeeze on the margin.  With loan demand down, many of our clients are requesting what-if […]

May 27, 2010

Consumers Shunning Risk

The question that many credit union leaders are asking themselves lately is, how far do we reach for yield?  With 10-year Treasury Rates rounding near 3% recently, how far can the balance sheet be pushed to make up for a squeezing margin? Consumers at large are facing a similar dilemma when it comes to managing […]

April 29, 2010

When is Worst Case?

In risk analysis, it is important to make realistic assumptions about potential bad scenarios that could play out—large increases in interest rates and credit risk exceeding expectations are just a couple that come to mind. While interest rates are at an all-time low, credit risk is at an all-time high for some credit unions. In […]

April 23, 2010

Liquidity: Another Thing to Worry About?

Imagine a scenario where it is difficult to find deposits. Suppose the stock market is booming and members are taking funds out of your credit union. Even if you don’t have liquidity issues, what if your competitors do and deposit rates are higher as a result? Is this hard to imagine given all the liquidity […]

March 18, 2010

10 Reasons Things Went Wrong… Has Anything Really Changed?

For years, we have been emphasizing a list of 10 reasons (not in order of priority) risks are not appropriately managed in the financial services industry.  Many of these reasons contributed to the volatile economic environment we find ourselves in today. Mindset—We can take action when bad things happen so things will never be as […]

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