With market interest rates on the rise for the first time in nearly 15 years, comes a host of new considerations for the credit union industry. Among them is an understanding that many Interest Rate Risk (IRR) policy limits are in fact a moving target. Whether rates stay put, continue to increase, or possibly head […]
Exploring the critical strategic side of CECL has received far less attention than CECL data-gathering and calculation methodologies. CECL is much more than a one-time adjustment to net worth and a change in accounting procedures. Its effects can reverberate all the way to the boardroom causing: A disconnect between financials and ultimate financial performance Increased […]
CECL is much more than an accounting issue and being focused only on compliance is shortsighted. The effects of CECL will transcend every area of credit unions and the implications, if they are understood, can be anticipated and prepared for. Communication with senior management is crucial to gain buy-in to these implications. C. myers has […]
Consider the following as you implement the NCUA’s NEV Supervisory Test: DO make sure to understand your answers by running NEV with the non-maturity deposit caps the test uses (currently 1% and 4%) before NCUA comes into your credit union. DON’T forget why NCUA decided to standardize. One of many reasons is that there is […]
We had the benefit of speaking at the AICPA conference on one of our favorite topics, how to use ALM for actionable business intelligence. In this case, the focus was on how a credit union can support changes to remain relevant. Another topic that also had a lot of buzz at the conference was CECL, […]