Liquidity management can be a wily beast. It’s already one of the most complicated issues that confronts credit union boards. Then add a pandemic’s influence on capital. NCUA recently issued guidance about the increased volatility of share balances, loan demand, and loan losses. Now is the time to tame the uncertainty.
AFTER THIS WEBINAR YOU’LL BE ABLE TO:
- Understand a strategic governance perspective to liquidity oversight
- Ensure executives handle the complexity of the CU’s liquidity needs in line with the board’s strategic vision
- Identify the regulatory safety and soundness requirements
- Create a system that establishes oversight reporting, system monitoring, and communication of risk tolerance
- Keep board members from dwelling on individual ratios instead of maintaining focus on the big picture
Liquidity is the credit union's capacity to meet its cash and collateral obligations at a reasonable cost. One of the trickiest roles for boards is liquidity risk management. This issue has been high on NCUA’s examination radar (a heads up) because of recent economic conditions. The COVID-related “flight to safety” has left many credit unions with dramatic amounts of deposits affecting capital levels and an “increase in the volatility of share balances, loan demand, and loan losses.” (NCUA Supervisory Letter, 21-CU-02).
On one hand, the board has a fiduciary duty to oversee all operations. On the other, directors often need more expertise to meaningfully contribute to the heavy lifting and complexities involved with managing liquidity. This is a governance issue that board members must fully understand in order to balance the governing strategy and operational details in such a dynamic environment.
WHO SHOULD ATTEND?
Credit union directors, supervisory committee members, and volunteers will benefit from this webinar and take-away tools.
- Sample asset liability management (ALM) policy
- NCUA liquidity guidance
- TEAM Resources liquidity analysis spreadsheet for the board
- Employee training log
- Interactive quiz
SPEAKER: Kevin Smith, TEAM Resources
Kevin Smith is a publisher and a consultant with TEAM Resources, where he oversees the board self-evaluation programs and facilitates strategic planning with credit unions and nonprofits. He has extensive experience in designing and implementing professional development resources to grow leaders within the credit union industry.
For 10 years, Kevin was Director of Volunteer Education at CUNA where he developed and oversaw conference and training events, webinars, print programs, and online courses. During his tenure at CUNA, he created several new programs, including the Volunteer Certification Program, an intensive, competency-based program for boards and supervisory committees.