Liquidity

In a recent column on reuters.com, Ann Saphir writes “Dallas Federal Reserve Bank President Robert Kaplan on Tuesday repeated his view that the current setting of U.S. interest rates is “roughly appropriate” through the end of this year, even as he noted risks from the flu-like epidemic that has brought parts of China to a halt.”

In a December 12, 2019 article on cutimes.com, Roy Urrico writes: “TransUnion forecasts balances and originations to grow for most key credit products and serious delinquency rates to either decline or remain steady for auto and unsecured personal loans, cards, and mortgages.”

Joyce M. Rosenberg, in a September 30, 2019 article in apnews.com,writes that small businesses are having difficulty expanding their companies because traditional lenders are cutting back on lending.

Credit unions may find this an opportunity to expand lending providing they: (1) carefully track profitability of individual services; (2) price loans based on individual risk; (3) have policies in place to assure compliance with regulations and risk control, and (4) manage the risk in loan portfolios.

Caroline Hroncich, in a September 3, 2019 article in benefitnews.com, writes that HSAs are expected to surge in coming years – perhaps becoming the IRAs of the future.

The big question for credit unions is the extent to be involved in services such as HSAs and how should they be priced and managed to assure Interest Rate Risk and profitability is managed appropriately.

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