Search: "interest rate risk"

Excerpt: The New IRR Rule – Be Prepared

The National Credit Union Administration recently issued its final rule requiring “federally insured credit unions to develop and adopt a written policy on interest rate risk management and a program to effectively implement that policy, as part of their asset liability management responsibilities.  The interest rate risk policy and implementation program will be among the […]

Operational Efficiency—Improving Earnings And Member Experiences While Driving Increases In Net Worth Dollars

In comments surrounding the new rule on Interest Rate Risk, the NCUA states that, “net worth is the best measure against which to gauge a credit union’s risk exposure.”  As credit unions are looking to improve earnings and grow net worth dollars in this historically low interest rate environment, yield on assets and cost of […]

c. notes Excerpt: Thriving In A World of Shrinking Margins

As interest rates have been at historic lows for a prolonged period of time, credit unions have had the benefit of lowering their cost of funds (COF) as loan and investment yields decline.  Many seem to have worked through their credit issues and, at least for now, have been able to reduce their provision for […]

Bits And Bites For The Board

NCUA’s new rule on interest rate risk emphasizes board-approved policy and oversight by the board.  The board is also responsible for setting strategic direction.  With the speed of change the industry has experienced lately, keeping board members apprised of all that’s happening has become more challenging than ever. Board meetings typically focus on the day-to-day […]

Have You Reviewed Your Policies Recently?

Historically, credit unions may have been wary of making material changes to their policies, whether an A/LM policy, Liquidity policy, Investment policy or broader Financial Management policy – for fear of raising regulatory “red flags.”  However, with the adoption of the final rule on interest rate risk (§741.3(b)(5)(i)), and the effective implementation date of September […]

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