CFO Focus: Ideas for staying afloat during the liquidity crunch

Here are nine to get your brainstorming started.

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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