MHSI Blog

Managing Risk - Interest Rates, Net Interest Margin, and Capital

Recent Economic Activity

At the end of the first quarter and throughout the second quarter, the U.S. economy experienced one of the largest, if not the largest,...

Net Economic Value (NEV) and The Current Environment

As interest rates increased from 2016 through 2018 so did concerns pertaining to interest rate risk in the up-rate scenarios. Many credit unions saw an increase in...

Economic Uncertainties and Scenario Risk Management

Prior to the Coronavirus expectations were for a gradual economic slowdown in 2020, but most economists were not expecting a full-blown recession.  The abruptness and...

Opportunities For Credit Unions - People Helping People

In February 2020, I attended the CUNA GAC conference. It was a treat to attend a conference with intelligent, friendly, down to earth people working in the credit...

2019 Interest Rate Recap and Outlook

As Interest Rates Go Down, What Does That Look Like For ALM?

On December 11th, 2019, the Federal Reserve left short-term interest rates unchanged at a target range of 1.5% to 1.75%. This year, the Federal Open Market Committee...

CECL and Your Credit Union’s Investment Portfolio

“Times and conditions change so rapidly that we must keep our aim constantly focused on the future.”

Liquidity Management - Essential to Your Credit Union

Liquidity and liquidity risk management is essential for every FICU, regardless of size and complexity. All credit unions are required to have a policy and process in...

Economic Commentary  -   Interest Rates, Uncertainties, & 2020 Budget

Following the September 18th Federal Reserve Open Market Committee (FOMC) meeting, the FOMC announced a 25 bp cut in the fed funds rate target range which now stands...

CECL - What We've Learned that Will Benefit Your Credit Union

This past summer, the Financial Accounting Standards Board (FASB) delayed the implementation of CECL for credit unions moving it to January 2023. Although this will...