c. myblog

October 19, 2017

Concentration Risk Limits on Mortgage-related Assets and the Unintended Consequences

Not all mortgage-related assets are created equal.  Therefore, using a one-size-fits-all approach in establishing concentration risk limits can lead to missed opportunities or a false sense of security. Concentration risk policies are intended to reduce the impact a risk event could have on a credit union’s balance sheet, financial structure, and/or business model.  The NCUA […]

September 14, 2017

What-If Analysis In The Decision-Making Process – Test Your Hypothesis

Performing what-if analysis is an integral part of both the A/LM and budget processes. When used correctly, what-if analysis is a powerful way for decision-makers to understand the impact of items under consideration in real-time. The challenge is that often people dive right into modeling and results, producing a less than optimal process. Consider applying […]

September 7, 2017

Hidden Cost of Addressing Liquidity Needs

Loan growth is a good thing, but when it outpaces deposit growth, liquidity pressures start to build. If your credit union is experiencing this situation, there are several liquidity options to consider—each of which comes with its own unique trade-offs. Here we look at two of them. Third-Party Borrowings Third-party borrowings are a common source […]

August 10, 2017

CECL: Takeaways and Considerations from Recent Workshops

CECL is much more than an accounting issue and being focused only on compliance is shortsighted. The effects of CECL will transcend every area of credit unions and the implications, if they are understood, can be anticipated and prepared for. Communication with senior management is crucial to gain buy-in to these implications. C. myers has […]

August 2, 2017

Where Is Your Deposit Growth Coming From?

Many financial institutions have become increasingly concerned about liquidity and for good reason. While deposit growth is often celebrated, where that growth is coming from can have important implications with respect to liquidity, A/LM, and future plans around membership and asset growth. Is your institution’s deposit growth coming primarily from growth in new accounts or […]

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