Newsroom
September 03, 2014
Long: CUs slow long-term investing
Sept. 3, 2014 – Federally insured credit unions significantly reduced their investment in longer-term assets in the second quarter, a move that positions them well in the event of a near-term rise in interest rates, said NAFCU Chief Economist and Director of Research Curt Long.
NCUA, in releasing second-quarter data, noted only a "slight decrease" in long-term investments and said that interest rate risk "continues to be a key concern."
"Credit unions have a proven track record when it comes to interest-rate risk," said Long. "The vast majority of credit unions have very manageable exposures, and the sharp drop in long-term investments during the second quarter shows that credit unions are making meaningful adjustments to their balance sheets as they prepare for a rise in rates."
Second-quarter data released Tuesday by NCUA show that credit unions' investments with maturities exceeding five years declined 9.3 percent in the second quarter. As a percent of net worth, these investments fell from 40.8 percent in the first quarter to 36.3 percent in the second quarter.
NCUA, in releasing second-quarter data, noted only a "slight decrease" in long-term investments and said that interest rate risk "continues to be a key concern."
"Credit unions have a proven track record when it comes to interest-rate risk," said Long. "The vast majority of credit unions have very manageable exposures, and the sharp drop in long-term investments during the second quarter shows that credit unions are making meaningful adjustments to their balance sheets as they prepare for a rise in rates."
Second-quarter data released Tuesday by NCUA show that credit unions' investments with maturities exceeding five years declined 9.3 percent in the second quarter. As a percent of net worth, these investments fell from 40.8 percent in the first quarter to 36.3 percent in the second quarter.
Share This
Related Resources
The Bottom Line on Insurance Tracking and Collateral Protection
Strategy
preferred partner
Allied Solutions
Blog Post
Resiliency In Your Incident Response Plan
Cybersecurity
preferred partner
DefenseStorm
Blog Post
Add to Calendar 2024-04-15 09:00:00 2024-04-15 09:00:00 Mergers and Acquisitions: Unifying Two Different Executive Total Compensation and Benefits Programs Listen On: Key Takeaways: [03:50] With the merger of a smaller credit union into a larger one you are really only dealing with integrating staff into the larger credit union. [05:53] When working with a merger of equals we start with a deep dive into the executive compensation and benefits of each organization. [09:09] If your current executive benefits provider doesn’t conduct regular plan evaluations, consider having a plan audit anyway. [13:46] Don’t overpay for these things if you don’t have to. When you have more options available that means the cost is more appropriate. [17:11] It is in a unified organization’s best interest to do tier timelines where we look at your top executives who are critical to the unified organization’s success today and then slowly add in the next levels. Web NAFCU digital@nafcu.org America/New_York public
Mergers and Acquisitions: Unifying Two Different Executive Total Compensation and Benefits Programs
preferred partner
Gallagher
Podcast
Add to Calendar 2024-04-11 14:00:00 2024-04-11 14:00:00 Regulation E: Impacts Across Your Institution Dive into regulatory excellence with, Regulation E: Impacts Across Your Institution. This webinar is tailored to empower you with the knowledge and strategies necessary to effectively implement the Electronic Funds Transfer Act (EFTA) and Regulation E within your operations. You’ll explore how to apply Regulation E across various business areas to ensure compliance obligations are met with precision. Key Takeaways Learn the basics of EFTA and Regulation E Understand how to apply Regulation E at your organization to detect processes and transactions that require Regulation E compliance Discover how Regulation E may apply to a large breath of areas in your institutions and functions for which you may rely on third-party vendors Review recent enforcement activity for non-compliance with EFTA and Regulation E Register Now $295 Members | $395 Nonmembers(Additional $50 for USB)One registration gives your entire team access to the live webinar and on-demand recording until April 11, 2025Go to the Online Training Center to access the webinar after purchase » Who Should Attend NCCOs NCRMs Compliance and risk titles Education Credits NCCOs will receive 1.0 CEUs for participating in this webinar NCRMs will recieve 1.0 CEUs for participating in this webinar Web NAFCU digital@nafcu.org America/New_York public
Regulation E: Impacts Across Your Institution
Credits: NCCO, NCRM
Webinar
Get daily updates.
Subscribe to NAFCU today.