c. myblog

June 17, 2010

Prolonged Low Rate Environment?

For months many have been watching and wondering when the inevitable increase in market rates might materialize.  Now, with some economists projecting that rates will stay at historic lows for another 12-18 months, credit unions should evaluate how, or if, they can continue to maintain net interest margin and ROA. Not all institutions have room […]

November 23, 2009

Tips For Avoiding Overstating Loan Income In The Budget Process

Loan interest income may be overstated in the budget if there is a large balance of non-performing loans.  This occurs if loan income is budgeted based on what the members are contractually obligated to pay rather than the actual payments received on performing loans. Here are the two most common ways credit unions are adjusting […]

October 29, 2009

2010 Budgeting Process: Focusing On What You Control

There are only five levers that are pulled to arrive at an ROA, and every single one is under threat to some degree: Yield on assets is under attack from external forces as rates are at historic lows and loan demand is down. Cost of funds has been helped somewhat by low rates.  However, it […]

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