10-28-2015

NEV(Net Economic Value) Why It’s Important and Why You Should Pay Attention

Understand two different applications of (NEV) to credit union Interest Rate Risk:

(1) Estimating Opportunity Costs of long-term, fixed-rate assets, and

(2) Estimating Economic Value of Non-Maturity Shares (NMS.)

THIS WEBINAR WILL HELP PARTICIPANTS:

Learn more about (NEV) as an economic approach to IRR analysis
Understand that its primary advantage is to estimate and place a value on all of the IRR in your balance sheet
Gain insight that NEV is far more than a liquidation model for the regulators as some have labeled it
Will learn to approach NEV from two perspectives:
1. As an estimate of the opportunity cost of owning intermediate or long-term fixed-rate assets in a rising interest rate environment
2. As an estimate of the economic value of non-maturity shares/deposits
Learn responses to answer regulatory objections