A (Asset Quality)

Brian Chappatta in an August 14, 2019 article in thinkadvisor.com reports why he thinks the recent yield curve inversions are an ominous sign for the economy – and for financial institutions.

Financial institutions should be carefully monitoring Interest Rate Risk in their investment and loan portfolios so the next recession does not impact them as the 2008 recession did.

Bernice Napach in an August 14, 2019 article in thinkadvisor.com reports new records in household debt as reported by the New York Fed. She goes on to report that although the aggregate delinquency rates improved in the second quarter of 2019, two-thirds of the $604 billion of delinquent debt was seriously delinquent — 90 days or more overdue.

Trevor Hunnicutt reports in an August 2019 article in reuters.com that credit card debt has risen and so have delinquent accounts. Also, almost 10% of student debt is now seriously delinquent.

This report makes it clear that credit unions need to be vigilant when it comes to lending and controlling risk in existing loan portfolios.

Aarthi Swaminathan reports in an August 8, 2019 article in finance.yahoo.com that student loans are adversely impacting the lives of young people.

Student loans for many Americans will hamper their ability to afford large purchase items such as autos and homes far into the future. Credit unions will need to carefully assess the risk in loaning to consumers who carry student debt – especially low-income consumers.

An August 5, 2019 article in bankrate.com, written by Mary Wisienski, reports that young Americans still like branches to transact income-generating banking business like loan applications, mortgages, etc.

Financial institutions may need to reconsider cutting back on their brick and mortar branches if they wish to maintain a competitive edge with consumers.

Tina Orem, in a July 26, 2019 article in cutimes.com, reports that consumers are more likely to switch financial providers if certain conditions exist.  Input from friends and family ranks high as does honest disclosures of fees, services and rates.

The Consumer Financial Protection Bureau reports that 28% of borrowers have debt in collections. This report makes it clear that credit unions need to be vigilant when it comes to lending and controlling risk in existing loan portfolios.

David Baumann, in a July 17, 2019 article in cutimes.com, writes that credit union’s effective date to implement CECL (Current Expected Credit Losses) is now January 1, 2023.Credit unions should be well on their way by now to working towards CECL implementation. 

Foster Kelly of CUNA, in a July 8, 2019 cuinsight.com article, reports that credit unions have become big players in the Indirect Auto Loan arena.  Kelly offers some tips on how to make such programs profitable in his article. Indirect Lending is a risky business.  Strict oversight and managing the risk in loan portfolios is mandatory.

Bernice Napach in a July 03, 2019 article in CUTimes.com reports that Gen Xers (age 40 to 51) are struggling to attain the same financial security that Boomers had at that age.