When the economy is booming, even ineffectually managed financialinstitutions can succeed. During a downturn, however, theseinstitutions, unprepared for challenges such as credit or interestrate risk, find themselves in an untenable situation and often facethe risk of failure. It is difficult to express the importance of a well thought-out strategic plan, including an Asset Liability Management(ALM) program that permeates virtually every decisionthe credit union makes. Less attention should be paid to what thecompetition is doing, and more consideration given to how a loanor deposit interest rate special will affect your balance sheet.For example, if you have too many long-term assets on thebooks, perhaps a marketing campaign to promote fixed-rate mortgagesis the wrong strategy, particularly when interest rates are athistoric lows. When economic times turn sour, forward thinkinginstitutions are usually in a much better position to “weather thestorm.”Arguably, proactive economic forecasting is more importanttoday than at any time in U.S. history. This means taking the time to follow this link to the entire article http://creditunionbusiness.com/archives/lki_310.pdfTuesday, April 13, 2010
Tom Dluzen interviews CNBC's Larry Kudlow
Tom Dluzen interviews CNBC's Larry Kudlow for Credit Union Business Magazine
When the economy is booming, even ineffectually managed financialinstitutions can succeed. During a downturn, however, theseinstitutions, unprepared for challenges such as credit or interestrate risk, find themselves in an untenable situation and often facethe risk of failure. It is difficult to express the importance of a well thought-out strategic plan, including an Asset Liability Management(ALM) program that permeates virtually every decisionthe credit union makes. Less attention should be paid to what thecompetition is doing, and more consideration given to how a loanor deposit interest rate special will affect your balance sheet.For example, if you have too many long-term assets on thebooks, perhaps a marketing campaign to promote fixed-rate mortgagesis the wrong strategy, particularly when interest rates are athistoric lows. When economic times turn sour, forward thinkinginstitutions are usually in a much better position to “weather thestorm.”Arguably, proactive economic forecasting is more importanttoday than at any time in U.S. history. This means taking the time to follow this link to the entire article http://creditunionbusiness.com/archives/lki_310.pdf
When the economy is booming, even ineffectually managed financialinstitutions can succeed. During a downturn, however, theseinstitutions, unprepared for challenges such as credit or interestrate risk, find themselves in an untenable situation and often facethe risk of failure. It is difficult to express the importance of a well thought-out strategic plan, including an Asset Liability Management(ALM) program that permeates virtually every decisionthe credit union makes. Less attention should be paid to what thecompetition is doing, and more consideration given to how a loanor deposit interest rate special will affect your balance sheet.For example, if you have too many long-term assets on thebooks, perhaps a marketing campaign to promote fixed-rate mortgagesis the wrong strategy, particularly when interest rates are athistoric lows. When economic times turn sour, forward thinkinginstitutions are usually in a much better position to “weather thestorm.”Arguably, proactive economic forecasting is more importanttoday than at any time in U.S. history. This means taking the time to follow this link to the entire article http://creditunionbusiness.com/archives/lki_310.pdf
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