Six questions CFOs are asking about liquidity

Consumer confidence hit a nine-year high in November as consumers’ views on both economic conditions and the labor market improved (Source: Wall Street Journal). Many credit unions have enjoyed increasing loan-to-assets, as have their competitors. Even if interest rates don’t increase, many decision-makers with high loan-to-assets are grappling with questions such as:

1. Do we have sufficient and cost-effective liquidity options to continue to handle robust loan demand?
2. How tight is liquidity for our geographic and digital competitors?
3. If our competitors’ liquidity is tightening, how can that impact our ability to attract cost-effective funds? How can it impact our interest rate risk?

continue reading »