Financial Intelligence

Solving the Liquidity Challenge for Credit Unions

Presented by Frank Farone, Managing Director, Darling Consulting Group

February 23, 2023

• • • • • • • •

This webinar addresses current and upcoming liquidity challenges in our industry and what credit unions should consider doing to develop a “best practice” approach to liquidity management. Deposits are down, cash levels are shrinking, and wholesale funding is on the rise. Furthermore, deposit competition is intensifying as the Fed continues to raise rates during this historical tightening cycle, and the delta between wholesale rates and deposit costs reaches extraordinary levels. Undeniably, liquidity is coming under pressure, and regulators are taking notice. Despite all these trends, credit unions need not panic that a liquidity crisis is on the horizon.

In this webinar, we share recent regulatory feedback and provide action items to enhance liquid reporting, including dynamic forecasting, stress testing, early warning indicators, and effective policy development. Additionally, the session will include case studies that highlight deposit strategies to manage the rising cost of liquidity most effectively during this tightening cycle, including hedging strategies to optimize earnings.

To help position your credit union for success in 2023 and beyond, this webinar will address the following:

• Managing regulatory pressures and expectations
• Identifying the appropriate liquid asset cushion (and not just cash!)
• Critical elements of an effective Contingency Funding Plan
• Building the appropriate stress tests – and remediation plans
• Becoming comfortable with higher levels of wholesale funding
• Deposit strategies to help manage rising funding costs
• Hedging strategies for IRR
• NEV issues, challenges, and solutions
• Policies that make good business sense, not regulatory appeasement!

Watch Our Webinar

Disclaimer: Notwithstanding any language to the contrary, nothing contained in these disclosures is intended to constitute an offer, inducement, promise, or contract of any kind. Any product descriptions and pricing may be subject to change without notice.

The content provided in these disclosures is presented as a courtesy to be used only for informational purposes and is not represented to be error free. The FHLBNY makes no representations or warranties of any kind with respect to the content contained herein, such representations and warranties being expressly disclaimed. The FHLBNY is not a financial or investment advisor.

Moreover, the FHLBNY does not represent or warrant that the content of these disclosures is accurate, complete or current for any specific or particular purpose or application. It is not intended to provide nor should anyone consider that it provides legal, accounting, tax or other advice. Such advice should only be rendered in reference to the particular facts and circumstances appropriate to each situation. The FHLBNY encourages you to contact appropriate professional(s) and consultant(s) to assess your specific needs and circumstances and to render such advice accordingly. In addition, the FHLBNY is not endorsing or recommending the use of the means or methods contained in or through these disclosures for any special or particular purpose.

It is solely your responsibility to evaluate the risks or merits of any funding or investment strategy. In no event will FHLBNY or any of its officers, directors or employees be liable for any damages — whether direct, indirect, special, general, consequential, for alleged lost profits, or otherwise – that might result from any use of or reliance on these materials.