August 2, 2004


Comments

 
 
 
  • I'm dissappointed that there is no mention of "BIG PICTURE" issues ALCOs should alert CU operations staff to: A probably rise in delinquency as borrowers with variable rate & variable payment loans find it harder to pay their bills on time, a need to review non-interest sensetive income like behavior modification fees, to recover overhead expended; something that may not have been a priority during the go-go capital buling years. Carolyn M. Warden, CCUE, President Shared Resources Consulting
    Anonymous
     
     
     
  • Correction to the first paragraph. First, the good news: In the short run, yes, a tightening will relieve income pressure – ONLY if credit unions are WILLING to hold the line on non-maturing-deposit dividend rates, like those paid on regular shares and share draft accounts. I agree with most CFOs who believe they will be able to keep those rates “sticky” on the way back up. HOWEVER ONLY BOARD MEMBERS HAVE THE AUTHORITY TO SET DIVIDEND RATES, SO EDUCATING DIRECTORS ON THE ABCs of ALM is ESSENTIAL.
    Anonymous
     
     
     
  • Correction to the first paragraph. First, the good news: In the short run, yes, a tightening will relieve income pressure – ONLY if credit unions are WILLING to hold the line on non-maturing-deposit dividend rates, like those paid on regular shares and share draft accounts. I agree with most CFOs who believe they will be able to keep those rates “sticky” on the way back up. HOWEVER ONLY BOARD MEMBERS HAVE THE AUTHORITY TO SET DIVIDEND RATES, SO EDUCATING DIRECTORS ON THE ABCs of ALM is ESSENTIAL.
    Anonymous
     
     
     
 
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