c. myblog

September 9, 2010

Annual Long-Term Financial Planning Process: Include A Deflation Scenario

We strongly recommend that credit unions annually invest the time to forecast financial performance for at least three future years.  The baseline forecast should compliment the strategic plan and include the cost of major initiatives, as well as expected growth trends.  If the baseline does not produce satisfactory performance, determine what changes could be made.  […]

September 2, 2010

Are Your Second Mortgages Secured?

As we discussed in our April post, Bankruptcies on the Rise and the Evolving U.S. Debt Burden, bankruptcies have been rising at an alarming rate this year. The trend is likely to continue—it will be interesting to note how the situation evolves (since 1st quarter) when the U.S. Judiciary releases second quarter figures in the […]

August 5, 2010

Chinese Rating Agency Downgrades U.S. Credit Rating

Chinese rating agency Dagong Global Credit Rating Co., known in China for rating companies, recently issued credit ratings for 50 countries for the first time. (Dagong’s Report) Below is an excerpt of the top 20 nations rated: Perhaps the most notable was the downgraded AA rating given to the U.S.—two levels below the top grade.  […]

July 2, 2010

Establishing Concentration Limits

Establishing concentration limits that enable you to make sustainable, sound business decisions while trying to satisfy new regulatory pressure is very tricky. The supervisory letter on concentration risk states that examples of concentrations within an asset class include… “Residential Real Estate Loans—collateral type, lien position, geographic area, non-traditional terms (such as interest-only, payment option, or […]

June 24, 2010

When Will This Be Over?

It’s natural to wonder when things will get back to “normal.”  But week after week, the only thing consistent in the economic indicators is that they are not consistent.  So how do we plan for the future? Most credit unions are designed to thrive in a different type of economic environment─one we may not see […]

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