c. myblog

November 13, 2014

Selling Investments for Liquidity

A few weeks ago, we discussed increasing loan-to-share ratios resulting from loan growth outpacing share growth.  The blog went on to discuss the potential liquidity pressures some could experience, today or in the future, if this trend continues. To keep the lending machine going, many decision-makers maintain that to fund future loan growth they will […]

October 17, 2014

Liquidity Risk: Loan-to-Share Ratios Are Moving Up

Throughout the sustained, low interest rate environment, many credit unions have become flush with non-maturity deposit funds, while also experiencing lackluster loan growth.  In other words, liquidity risk hasn’t necessarily been at top of mind. However, as the economic landscape shifts and murmurings of an increase in government interest rates grow, the issue of liquidity […]

October 31, 2013

All Sources Of Liquidity Cost Something – But Which Impacts Net Worth Ratios The Least?

As credit unions develop contingent funding scenarios to test against contingency funding plans, the solution to a liquidity event is perhaps as important as ensuring the scenario is both realistic and rigorous. In working with various credit unions, solutions to liquidity scenarios range from CD promotions to brokered (non-member) deposits to borrowings and lastly, to […]

August 22, 2013

Liquidity – Positioning Your Credit Union for Long-Term Solutions

With the recent focus on contingency liquidity planning, many credit union management teams are evaluating how to meet the potential demand that a rapid-onset, high-impact liquidity event may have on their balance sheet. In order to meet a hypothesized short-term contingent event, management teams are turning to the Central Liquidity Facility (CLF) or Federal Reserve […]

May 9, 2013

Liquidity – Evaluating And Understanding Your Contracts

Most liquidity concerns today revolve around having too much liquidity without viable investment opportunities. However, after the recent (and sustained) flight to safety, some credit unions are beginning to consider the potential impact of liquidity leaving insured financial institutions. In the short-term, a liquidity event may be significant deposit run-off or draws on unfunded loan […]

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