c. myblog

August 5, 2011

U.S. Debt Downgrade?

Six days before the deadline to raise the national debt limit, 30 of 53 economists surveyed by Reuters news service believed the United States will lose its AAA debt rating in the near future.  Some would argue that kind of action is overdue with the national debt standing at about $14.5 trillion and growing.  However, […]

July 14, 2011

Do You Have A Clear Philosophy On Fees?

With fee income under fire, it is becoming more important than ever for credit union boards and managements to be able to articulate their philosophies on fees.  Simply saying, “We don’t like to fee our members” is not enough.  Most credit unions are already considering, if not implementing, new fees and fee increases—not because they […]

June 3, 2011

NEV And Net Worth Are Not The Same

Reminder: While net economic value (NEV) and net worth represent two completely different concepts, they are often used incorrectly as interchangeable terms.  Even NCUA sometimes adds to the confusion.  In the April 2011 NCUA Report¹, an article on rising interest rate risk gives an example of a credit union with $5.5M in long-term, fixed-rate mortgages […]

May 24, 2011

Hot Money In Waiting

Many credit unions continue to see higher levels of deposit growth despite lowering rates—and even a rising stock market—as members choose safety and certainty over return.  While the flight to safety has been discussed at length, the gradual shift from CDs to share products has received less attention. Over the past 6 to 12 months, […]

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 […]

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