c. myblog

September 7, 2017

Hidden Cost of Addressing Liquidity Needs

Loan growth is a good thing, but when it outpaces deposit growth, liquidity pressures start to build. If your credit union is experiencing this situation, there are several liquidity options to consider—each of which comes with its own unique trade-offs. Here we look at two of them. Third-Party Borrowings Third-party borrowings are a common source […]

August 2, 2017

Where Is Your Deposit Growth Coming From?

Many financial institutions have become increasingly concerned about liquidity and for good reason. While deposit growth is often celebrated, where that growth is coming from can have important implications with respect to liquidity, A/LM, and future plans around membership and asset growth. Is your institution’s deposit growth coming primarily from growth in new accounts or […]

February 15, 2017

Too Much Loan Growth?

Many credit unions have had the good problem of being so successful in lending that liquidity has become a challenge.  A blog we wrote in December 2016 identified 6 key questions that decision-makers should evaluate on the issue.  This post expands on that topic by looking at several possible liquidity solutions credit unions are considering […]

January 18, 2017

Pay Attention to Liquidity

As we conclude our budget and forecasting work with many credit unions, we continue to see expectations for loan growth to exceed share growth in 2017. Combining this trend with an assumption for higher interest rates could squeeze liquidity positions in 2017. Callable bonds may no longer get called and mortgage related assets will extend […]

December 8, 2016

Six Questions CFOs Are Asking About Liquidity

Consumer confidence hit a nine-year high in November as consumers’ views on both economic conditions and the labor market improved (Source: Wall Street Journal). Many credit unions have enjoyed increasing loan-to-assets, as have their competitors. Even if interest rates don’t increase, many decision-makers with high loan-to-assets are grappling with questions such as: Do we have […]

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