CFO Focus: Ideas for staying afloat during the liquidity crunch
Here are nine to get your brainstorming started.
![](https://www.cuinsight.com/wp-content/uploads/2016/01/bigstock-an-emergency-tire-floating-in-77869478-e1452168079464.jpg)
Credit unions have struggled to manage excess liquidity for the past couple of years. The pandemic forced them to grow their investment portfolios at near-zero rates as deposits ballooned and loan growth was tepid. Now that we find ourselves in a more attractive rate environment, that challenge has reversed. Credit unions have a golden opportunity to improve net interest margins and loan-to-share ratios—if only they had the liquidity to support it!
Causes of the Liquidity Crunch
The struggle to meet liquidity targets is driven largely by these two factors:
1. High demand for vehicle and unsecured loans. Recent CUNA Mutual data illustrated that Q2 2022 set the highest growth rate in vehicle loans at credit unions since 1984.
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