One of the challenges of running a successful credit union, and any business for that matter, is “silo” thinking in which talent is focused solely on individual areas and has lost sight of the bigger picture. Making decisions in isolation can be detrimental to the overall success of an institution. However, effective A/LM education and […]
/images/White-Logo.png00Charlene Leland/images/White-Logo.pngCharlene Leland2014-03-06 10:30:562021-01-25 15:32:04Make “Silo” Thinking a Thing of the Past: A/LM Education and Decision Filters
Net economic value (NEV) will not show you the effect on current earnings when testing risk-mitigating strategies. To illustrate, assume a credit union concerned about its interest rate risk is considering selling all of its 30-year, fixed-rate, 1st mortgages. The credit union plans to put the proceeds into overnights to give themselves the best hedge […]
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 […]
As of January 10, 2014, the “Ability to Repay and Qualified Mortgage Standards under the Truth in Lending Act (Regulation Z)” went into effect. Beyond the added compliance burden this will have, consider how this rule could impact strategy, interest rate risk and earnings at individual credit unions, and for the financial services industry as […]
/images/White-Logo.png00Charlene Leland/images/White-Logo.pngCharlene Leland2014-02-13 11:02:492021-01-25 15:32:05Qualified Mortgages, More Than Just a Compliance Issue…
Over the past few weeks there has been some increased discussion in ALCO and board meetings about increasing deposit rates in the near future. Some credit unions have already increased deposit rates, while other decision makers are feeling pressure to do so. Although short-term Treasury rates, which typically drive deposit rates, have changed very little […]
/images/White-Logo.png00Charlene Leland/images/White-Logo.pngCharlene Leland2014-02-06 13:21:272021-01-25 15:32:05Is Now a Good Time to Increase Deposit Rates?
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Make “Silo” Thinking a Thing of the Past: A/LM Education and Decision Filters
ALM Blog PostsOne of the challenges of running a successful credit union, and any business for that matter, is “silo” thinking in which talent is focused solely on individual areas and has lost sight of the bigger picture. Making decisions in isolation can be detrimental to the overall success of an institution. However, effective A/LM education and […]
NEV: Things to Remember
ALM Blog PostsNet economic value (NEV) will not show you the effect on current earnings when testing risk-mitigating strategies. To illustrate, assume a credit union concerned about its interest rate risk is considering selling all of its 30-year, fixed-rate, 1st mortgages. The credit union plans to put the proceeds into overnights to give themselves the best hedge […]
c. bit: Please don’t “Frankenstein” your Asset/Liability Management Policy
ALM Blog PostsOver 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 […]
Qualified Mortgages, More Than Just a Compliance Issue…
ALM, Interest Rate Risk Blog PostsAs of January 10, 2014, the “Ability to Repay and Qualified Mortgage Standards under the Truth in Lending Act (Regulation Z)” went into effect. Beyond the added compliance burden this will have, consider how this rule could impact strategy, interest rate risk and earnings at individual credit unions, and for the financial services industry as […]
Is Now a Good Time to Increase Deposit Rates?
ALM Blog PostsOver the past few weeks there has been some increased discussion in ALCO and board meetings about increasing deposit rates in the near future. Some credit unions have already increased deposit rates, while other decision makers are feeling pressure to do so. Although short-term Treasury rates, which typically drive deposit rates, have changed very little […]