Interest rate risk modeling requires the user to make assumptions about member and management/board behavior. For example, some members will pay back their loans ahead of schedule and the rate of prepayment will increase if rates fall and decrease if rates go up, especially on mortgage-related products. Likewise, the incentive for members to move some […]
/images/White-Logo.png00Charlene Leland/images/White-Logo.pngCharlene Leland2012-03-01 14:25:552021-01-25 15:32:45How Do You Know Your Modeling Assumptions Are Right?
This post is a continuation of Investing At “Record” Low Rates… published February 10, 2012. Investments with complex optionality are increasingly being added to credit union investment portfolios. As such, it is critical that credit unions have a solid understanding of what they may be purchasing, before the transaction is executed. First, make sure your […]
The Credit Union Times recently released an article titled Mobile Banking Report: Credit Unions Lagging Banks. In the article, Mary Monahan of Javelin Strategy & Research cautions that institutions that lack mobile banking risk losing valuable customers to those that offer it. She enforces that many credit unions still do not offer mobile banking apps […]
The Fed’s first 3-year “forecast” revealed that almost half of the Fed Governors believe the Fed will keep short-term rates very low through 2014. Coupled with continued weak loan demand, many credit unions feel like they are forced to do more with investments. These two factors may cause more credit unions to extend investments moving […]
It may be the last thing you think you need to worry about—needing liquidity. However, the things furthest from your mind could be the most important to think about in the risk management process. Risk management is, in part, an exercise of thinking about and preparing for the unexpected. When was the last time threats […]
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
Cookie
Duration
Description
cookielawinfo-checkbox-analytics
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional
11 months
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy
11 months
The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
How Do You Know Your Modeling Assumptions Are Right?
ALM, Interest Rate Risk Blog PostsInterest rate risk modeling requires the user to make assumptions about member and management/board behavior. For example, some members will pay back their loans ahead of schedule and the rate of prepayment will increase if rates fall and decrease if rates go up, especially on mortgage-related products. Likewise, the incentive for members to move some […]
Evaluating Investments
ALM Blog PostsThis post is a continuation of Investing At “Record” Low Rates… published February 10, 2012. Investments with complex optionality are increasingly being added to credit union investment portfolios. As such, it is critical that credit unions have a solid understanding of what they may be purchasing, before the transaction is executed. First, make sure your […]
Mobile Banking And Strategic Resource Allocation
Consumer Behavior and Technology, Strategic Planning Blog PostsThe Credit Union Times recently released an article titled Mobile Banking Report: Credit Unions Lagging Banks. In the article, Mary Monahan of Javelin Strategy & Research cautions that institutions that lack mobile banking risk losing valuable customers to those that offer it. She enforces that many credit unions still do not offer mobile banking apps […]
Investing At “Record” Low Rates…
ALM Blog PostsThe Fed’s first 3-year “forecast” revealed that almost half of the Fed Governors believe the Fed will keep short-term rates very low through 2014. Coupled with continued weak loan demand, many credit unions feel like they are forced to do more with investments. These two factors may cause more credit unions to extend investments moving […]
Are You Feeling Liquid?
Liquidity Blog PostsIt may be the last thing you think you need to worry about—needing liquidity. However, the things furthest from your mind could be the most important to think about in the risk management process. Risk management is, in part, an exercise of thinking about and preparing for the unexpected. When was the last time threats […]