Published in: BANK Business
The current interest-rate environment presents challenges for credit unions. The Fed has continued to raise rates and while industry-wide financial performance has improved, net interest margins remain thin. Appropriately pricing deposits and loans while effectively managing the investment portfolio can be difficult, especially as many credit union CFOs wear multiple hats.
However, if your credit union has a well-thoughtout investment philosophy along with a disciplined strategy and framework for making investment decisions, it becomes fairly independent of interest rate levels. This is why ALM First advises credit unions to focus on process, rather than simply considering various bonds and securities to add to their portfolios.