c. myblog

May 15, 2014

Is a Fight for Deposits Heating Up?

We are seeing some financial institutions in pockets of the country raise money market and CD rates.  If you have not done so already, now may be a good time to proactively test the financial, liquidity and strategic impact of a fight for deposits, assuming rates don’t change.

February 13, 2014

Qualified Mortgages, More Than Just a Compliance Issue…

As of January 10, 2014, the “Ability to Repay and Qualified Mortgage Standards under the Truth in Lending Act (Regulation Z)” went into effect. Beyond the added compliance burden this will have, consider how this rule could impact strategy, interest rate risk and earnings at individual credit unions, and for the financial services industry as […]

December 19, 2013

Concentration Limits and Interest Rate Risk – a Moving Target

Over the last few years, many credit unions have been asked to complete concentration risk policies and develop limits founded on some type of analysis.  Some institutions have also included limits in their policy designed to mitigate exposure to interest rate risk as a supplement to more traditional asset/liability management practices.  These limits should be […]

November 15, 2013

Survey on NCUA Proposed Rule for Capital Planning and Stress Testing

Recently, NCUA released its proposed rule for capital planning and stress testing.  Even though the regulation will only affect credit unions with assets $10 billion and above, consider your institution.  How adequately prepared are you if, in the future, this rule were to be applied to credit unions under $10 billion in assets? Let us […]

October 24, 2013

Interest Rate Risk and Member CD Early Withdrawals

An important component of A/LM modeling that some interest rate risk (IRR) models ignore is applying early withdrawal assumptions to Member CDs. This is especially true for credit unions whose members are rate sensitive and/or accustomed to higher rates. If models do not consider early withdrawals, the benefit of longer-term CDs can be materially overstated […]

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