Many credit union management teams are considering changes to their mobile platform, home banking, loan origination system (LOS) and/or account opening system (AOS). The following are just a few (of many) tips to consider: Get clarity before submitting RFPs. As a leadership team, agree on your decision drivers and the specific business objectives you are […]
One of the key characteristics of a high-functioning credit union is the ability to make “no” decisions in order to stay focused on the credit union’s strategic direction. As this year starts and the project list grows, it will be important to keep a laser-like focus on the projects that the management team has determined […]
This blog will begin to review the economic value of a swap when testing an instantaneous rate change. This builds on the blog Evaluating Derivatives—Part II: Economic Value. As before, the example swap has the following terms: 7-year term Notional amount: $100 million Credit union pays fixed rate of 2.00% Credit union receives 3-month LIBOR […]
In a previous blog, impact to earnings was discussed as it relates to derivatives and the insurance they can provide against a rising rate environment. While derivatives can be a good option for hedging interest rate risk, especially in today’s low rate environment, it is also important to consider how economic values are determined. Because […]
The low price of oil is affecting communities across the nation in a variety of ways, depending on their relationships to energy-related industries. We’d like to hear from you – how is it affecting your credit union? What changes do you anticipate in lending? What other areas could be affected?