Maintain an adequate level of liquidity with our Liquidity Shock Tests.

Credit Unions, like all financial institutions, rely on the trust of their depositors for continuing operations. One key element affecting that trust is the ability of members to access the funds on deposit with the credit union either through face to face access or electronic means. A lack of available cash can create reputation risk and severely diminish trust in the institution.

Diminishing trust can lead to catastrophic events such as a run on deposits. It is incumbent, therefore, for the credit union to take appropriate steps to manage liquidity and assure that it is adequate to support anticipated cash needs.

Identify strategies to correct liquidity deficiencies.

TCT offers an interactive tool through which the credit union can conduct periodic tests to measure the effect of decreasing deposits or increasing used of unfunded member lines of credit on liquidity. Based on the results of these tests management will then identify back up sources of available cash to maintain an adequate level of liquidity. Furthermore, the Shock Test will help identify strategies to correct liquidity deficiencies, such as:

  • Increasing cash and equivalents
  • Increasing available Lines of Credit 
  • Slowing loan production
  • Promoting longer term member maturity shares

With our Equity Tracking tool, you'll always know where you stand.

Equity is the foundation of a health credit union. Maintaining a healthy level of equity is a primary goal of all credit unions and their regulators.

The equity tracking tool starts with the annual budget to identify monthly equity ratio targets based on the monthly budget numbers. Then, as actual monthly financial performance numbers are recorded, it updates the actual numbers for comparison with the budget. In this way, the tracking tool couples budgeting and reporting to provide a consistent, long-term trend analysis of the credit union’s equity position.

Did you know all of our solutions are interconnected?

Learn how they work together to increase your managerial effectiveness.

How It Works