Liquidity – Part of a Three-legged Stool

BY CYNTHIA R. WALKER – CEO NCUA’s Supervisory Focus for 2017 and 2018 included both interest rate risk and liquidity risk. I expect both will remain on their supervisory priority list for 2019. We have observed that regulators have been monitoring liquidity more...

Current Economic Outlook and Interest Rates

BY MATTHEW JACOBSEN – VICE-PRESIDENT Are we seeing clouds gathering on the horizon for economic growth? Real gross domestic product (GDP) increased at an annual rate of 3.4 percent in the third quarter of 2018 according to the “third” estimate. As seen in the...
ALCO – Always Looking Constructively

ALCO – Always Looking Constructively

BY CYNTHIA R WALKER, CEO   The Asset Liability Committee plays a large role in the strategizing and performance of a credit union. Understanding the ALCO’s role and how to organize and utilize an effective ALCO can be ever changing and worth reviewing. Whether...
Minding the Margin

Minding the Margin

BY MATTHEW JACOBSEN The Federal Funds rate has now been increasing since December of 2015. The current Federal Funds target rate is 1.75% at the time of this writing. The U.S. Treasury curve three-month to five-year terms have also been increasing during this time...