Search: "interest rate risk"

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 […]

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. […]

Strategic Plans And Quantifying Risk

In the recently issued Interest Rate Risk Questionnaire, the NCUA devoted an entire section to evaluating if decision-making is informed by interest rate risk measurement systems.  The guidance specifically references interest rate risk “what-if” testing in conjunction with strategic plans and operational decisions—and that “what-if” analysis outcomes should be documented within the strategic plan to […]

Start typing and press Enter to search