Insights from Catalyst

Lower gross asset yields, due to sluggish loan activity, and a prolonged low interest rate environment add up to downward pressure on credit union net worth and net interest margins. The current outlook on short-term interest rates is that they’ll likely remain low for an extended period, while loan portfolio growth is expected to slowly improve. So, what does that mean for the now?

In Greek mythology, Achilles was the greatest of all Greek warriors. But despite his overall strength, one small, unprotected area on his heel led to his ultimate downfall. As warriors against fraud, credit unions vigilantly establish safeguards to protect their institutions, but one small vulnerability – email – can be the Achilles heel that cripples financially and reputationally.

The recent shifts in the economy and interest rates during the pandemic have impacted credit unions in several distinct ways. As more changes are likely to follow, how can institutions prepare for the potential impacts to their interest rate risk profile?

I am a fan of infographics. Perhaps you are, too. So I was pleased when I came across a recent infographic from Catalyst Corporate’s newest service provider – Advanced Fraud Solutions (AFS). The helpful infographic highlights preventive measures members can take to avoid a recent trend – stimulus check fraud.

Conversation around interest rate derivatives has slowly gained more traction within the credit union industry over the last year. And the NCUA Board approved a final rule that modernizes the proposed derivatives rule, making it more of a principles-based approach, while retaining essential safety and soundness components.