REMINDERS
ALM Basics Presentation
Get handouts and audio of Catalyst Strategic Solutions’ June 26 ALM Basics webinar at www.catalystcorp.org/invtrain.aspx.
TranZact Training Webinar
Friday, July 27
1-2 p.m. CT
Learn how to streamline credit union operations through system efficiencies and shortcuts available in TranZact. Register at www.catalystcorp.org/training.aspx.
RATES
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Overnight Account
Effective Jul 09, 2012
|
| Cash Management |
0.10% |
| Greater than $3,000,000 |
0.21% |
| $1,000,000.01 to $3,000,000 |
0.17% |
| $1,000,000 and under |
0.13% |
Market Indicators
Effective Jul 10, 2012
|
| Fed Funds Effective |
0.17% |
| Prime Rate |
3.25% |
| 3 Month Bill |
0.08% |
| 6 Month Bill |
0.14% |
| 1 Year T-Bill |
0.19% |
| 2 Year T-Note |
0.27% |
| 5 Year T-Note |
0.63% |
| 10 Year T-Note |
1.52% |
| 30 Year Bond |
2.63% |
Average Rates for Month End
Effective Jun 30, 2012
|
| Cash Management Fund |
.10% |
| CIF |
.115% |
Line of Credit Loan Rates
Effective Jul 10, 2012
|
| Performance Settlement LOC (001) |
.75% |
| Standard Settlement LOC (002) |
.75% |
| Advantage LOC (003) |
.50% |
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IRR WEBINARS DRAW LARGE RESPONSE
More than 200 credit union professionals tuned into Catalyst Strategic Solutions’ two webinars on NCUA’s Interest Rate Risk Policy and Program (IRR) requirements. Brian Turner, Catalyst Strategic Solutions Director and Chief Strategist, provided an outline for developing a comprehensive risk management program that addresses examiner criteria.
“We want to help credit unions comply with relevant rules and regulations and be prepared to answer examiner review checklist items. It is equally important to identify the critical issues underlying interest rate risk and the strategic decision-making process that should take place to keep the credit union financially successful,” said Turner. “We accept that we are in the risk business. Fortunately, the risk is manageable.”
NCUA’s recent letters on IRR contain “a lot of practical guidance,” Turner said, and he commended the NCUA for acknowledging that IRR programs cannot be one-size-fits-all. According to NCUA, “It is impossible to establish specific, regulatory requirements for interest rate risk that would be appropriate for all FICUs.... Accordingly, FICUs should devise a policy and risk management program appropriate to their own situation.”
A common question among webinar participants, according to Turner, was whether credit unions needed to establish stand-alone interest rate risk policies. Credit unions are not required to have a separate policy, Turner said. The NCUA regulation states, “Credit unions have the option of either creating a separate IRR policy or incorporating it into investment, ALM, funds management, liquidity or other written policies.”
Turner reminded credit unions of the underlying intent of the regulation. “Ideally, credit unions will focus first on the critical issues that create risk exposure, and then develop policy standards that align with the risk appetite of their board to manage that exposure.”
For more information on IRR Policy and Program requirements, contact Catalyst Strategic Solutions at contactis@catalystcorp.org or 800.301.6196.
WEBINAR: SALLIE MAE SMART OPTION STUDENT LOANS
Learn how the Sallie Mae Smart Option Student Loan Program can benefit your credit union and fill a need in the marketplace:
- Fill the gap in payment for higher education
- No cost or funding required to make private student loans available
- Generate additional revenue without capital investment
- Minimal IT requirements to launch the program
- Member support and loan delivery are handled by Sallie Mae
Catalyst and Sallie Mae will conduct a one-hour informational webinar Thursday, July 26, 2:30 p.m. CT. Registration is not required. Join the online event through the special connection at www.catalystcorp.org/webinars.aspx. For more information, contact Mike McGinnis at 800.301.6196.
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