Search: "interest rate risk"

Preventing Misleading Aggregation Results

While assumptions such as prepayment speeds, deposit pricing and withdrawal speeds get much examiner attention, an equally important modeling issue is the aggregation of account data. The NCUA’s Interest Rate Risk Questionnaire defines data aggregation as the act of combining general ledger accounts when inputting data into the model. Basically, it involves grouping “like” products. […]

Test Your Budget As Part Of Your A/LM Process

Wouldn’t it be nice to know if that “light at the end of the tunnel” is actually a fully loaded freight train coming straight at you?  Back in August, we wrote a blog with some tips on budgeting heading into 2013:  Budgeting Tips For 2013.  One of the points suggested evaluating the budget from an […]

The Time To Comment Is NOW—Use Ours If Needed

Credit unions have a little more than a week left to submit comments for a Proposed Standards Update regarding liquidity risk and interest rate risk (click here to see our comments).   So far about 15 comments have been posted, but it is important for the Financial Accounting Standards Board (FASB) to know how this […]

Evaluating Investment Proposals With Enhanced Due Diligence

Understanding the impact that new business decisions can have on a credit union’s risk profile is central to effective asset/liability management, and is even addressed in NCUA’s recently issued Interest Rate Risk Questionnaire.  This is especially appropriate when evaluating proposals from investment brokers seeking to “rebalance” or “strategically realign” a credit union’s investment portfolio. Many […]

Budgeting Tips For 2013

As the 2013 budgeting season gets into full swing, things have not changed much for most credit unions.  The industry is still facing the challenges of weak loan demand, robust deposit growth and declining asset yields.  Here are a few things to keep in mind as you put together your budget: Make it as realistic […]

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