c. myblog

July 29, 2010

When Stress Tests Aren’t Stressful

The recent news about the European bank stress tests has us thinking about when a stress test isn’t a stress test.  By now, you may have heard that out of the banks tested, 7 out of 91 failed the “stress tests”.¹  That is a 92% pass rate, and should earn the European banking system an […]

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 […]

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 […]

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 […]

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