Search: "business model"

Capital Planning and Stress Testing

As the first round of NCUA supervisory stress tests are being completed, NCUA’s capital planning and stress testing rule for the largest credit unions might have you asking if you should be doing capital planning and stress testing too. Even if you are not a federally insured credit union with assets of $10 billion or […]

Thank Goodness the Proposed Risk-Based Capital Rule Doesn’t Affect Me!

If you’ve looked at NCUA’s calculator and determined that the rule won’t hurt you, go ahead and breathe a sigh of relief.  Then set aside some time to at least look at the table of risk weightings and some of the many analyses that have been done by various groups.  This is a cooperative industry […]

Appropriately Managing Risks to Net Worth

Many risks are present in credit union structures and business models today. Interest rate risk, liquidity risk, credit risk, compliance risk, regulatory risk, business risk, fraud risk—the list can go on and on. Increasing regulatory pressure to ensure that all risks are understood and quantified heightens the stakes for all involved in the risk management […]

Make “Silo” Thinking a Thing of the Past: A/LM Education and Decision Filters

One of the challenges of running a successful credit union, and any business for that matter, is “silo” thinking in which talent is focused solely on individual areas and has lost sight of the bigger picture. Making decisions in isolation can be detrimental to the overall success of an institution. However, effective A/LM education and […]

Can Your Credit Union Absorb A Change to NCUA Risk-Based Net Worth Requirements?

Debbie Matz, NCUA Chair, recently announced in The NCUA Report that “NCUA staff is developing an approach targeted to the types of risk held by different credit unions. A net worth ratio of 7 percent would remain the floor… However, credit unions with assets over $50 million would be subject to improved risk-based capital requirements. […]

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