c. myblog

February 20, 2014

c. bit: Please don’t “Frankenstein” your Asset/Liability Management Policy

Over the years we have reviewed many credit union A/LM policies. One of the biggest issues we’ve found is that often the policies are “Frankensteined” from various sources. We are reminded of this currently as credit unions are writing policy with respect to liquidity management and contingency funding plans. Why does this happen? Our theory […]

October 31, 2013

All Sources Of Liquidity Cost Something – But Which Impacts Net Worth Ratios The Least?

As credit unions develop contingent funding scenarios to test against contingency funding plans, the solution to a liquidity event is perhaps as important as ensuring the scenario is both realistic and rigorous. In working with various credit unions, solutions to liquidity scenarios range from CD promotions to brokered (non-member) deposits to borrowings and lastly, to […]

August 9, 2012

NCUA Beefs Up Insurance Requirements with New Emergency Liquidity Rule

Approved at NCUA’s July 24th board meeting, the proposed rule on maintaining access to emergency liquidity will require credit unions to create/maintain various levels of liquidity planning based on asset sizes. Under $10 million in assets:  Maintain a written policy approved by the board with a list of contingent liquidity sources. $10 million or more […]

April 23, 2010

Liquidity: Another Thing to Worry About?

Imagine a scenario where it is difficult to find deposits. Suppose the stock market is booming and members are taking funds out of your credit union. Even if you don’t have liquidity issues, what if your competitors do and deposit rates are higher as a result? Is this hard to imagine given all the liquidity […]

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