c. myblog

August 23, 2012

For Your Radar: Proposed FASB Update On Liquidity And IRR

From now until September 25, the Financial Accounting Standards Board (FASB) has a Proposed Standards Update open for comment regarding liquidity risk and interest rate risk. The proposed interest rate risk disclosures, if passed, would provide dangerous and misleading information about the safety and soundness of a financial institution, and therefore, the financial services industry. […]

August 9, 2012

NCUA Beefs Up Insurance Requirements with New Emergency Liquidity Rule

Approved at NCUA’s July 24th board meeting, the proposed rule on maintaining access to emergency liquidity will require credit unions to create/maintain various levels of liquidity planning based on asset sizes. Under $10 million in assets:  Maintain a written policy approved by the board with a list of contingent liquidity sources. $10 million or more […]

February 2, 2012

Are You Feeling Liquid?

It may be the last thing you think you need to worry about—needing liquidity. However, the things furthest from your mind could be the most important to think about in the risk management process.  Risk management is, in part, an exercise of thinking about and preparing for the unexpected.  When was the last time threats […]

February 17, 2011

Shifting Deposit Trends

Over the last couple years, credit unions have grown lower-cost deposits.  This growth has largely been the result of a flight to safety that has occurred due to the economic environment.  Certificates of deposit (excluding IRAs) have decreased from a high of about 28% of funding in late 2007 to about 24% as of 3rd […]

April 23, 2010

Liquidity: Another Thing to Worry About?

Imagine a scenario where it is difficult to find deposits. Suppose the stock market is booming and members are taking funds out of your credit union. Even if you don’t have liquidity issues, what if your competitors do and deposit rates are higher as a result? Is this hard to imagine given all the liquidity […]

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