NCUA’s Post

💡 One way credit unions can better manage their cash is to look at a cash forecasting system. These systems work directly with your cash handler to facilitate efficient orders for your branches and ATMs. If you think forecasting could benefit you, ask me about our Logicash program!

Funding diversity includes having access to at least one contingent federal liquidity source during times of financial emergency and distressed economic circumstances. Section 741.12 of NCUA regulations requires access to either the Central Liquidity Facility or the Federal Reserve’s Discount Window for all credit unions with $250 million or more in total assets; however, all credit unions should consider having a federally sourced liquidity backup when other market funding sources prove inadequate. The ability to access funding at a predictable rate through the CLF or Discount Window should be part of credit unions’ contingency liquidity risk management plan under a range of scenarios, not just in times of crisis. Visit https://lnkd.in/e3RKMa96 to learn more about maintaining diversified liquidity sources. #creditunions #liquidity #diversification #investment #money

#corporatetreasury function plays a critical role in the current interest rate environment. Volatile market conditions can lead to increased #liquidity #fx #interestrates and other risks. Is your treasury function ready to manage these challenges?

On August 29, 2023, the Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System (the board), and the Federal Deposit Insurance Corporation (collectively, the agencies) issued a joint notice of proposed rulemaking that would require certain large depository institution holding companies, U.S. intermediate holding companies of foreign banking organizations (collectively, large banking organizations [LBO]), and certain insured depository institutions (IDI) to issue and maintain an outstanding minimum amount of long-term debt (LTD). The requirement would improve the resolvability of these LBOs and IDIs in case of failure, reduce costs to the Deposit Insurance Fund, and mitigate contagion and financial stability risks by reducing the risk of loss to uninsured depositors.

The recent bank failures have reminded us that firms must always be prepared to recover from stresses and to be resolved. In our article (attached) we highlight some striking features of this latest crisis and draw out lessons that banks can learn for recovery and resolution planning (RRP). We discuss, in particular, the credibility of liquidity outflow assumptions and management actions, the importance and complexity of communications, and the challenges of dealing with slow-moving viability and trust erosion. The paper proposes several actions that banks should take now to enhance their RRPs, as well as areas for engaging with authorities. Please do not hesitate to contact us if you’d like to discuss the topics in the article. #crisismanagement, #toobigtofail , #financialresilience Christopher Woolard CBE, Fred Speight, Tom Groom, Dan Cooper, Ian Cosgrove, Steven Lewis, Steve Wynn

Recent bank failures have reminded us that firms must always be prepared to recover from stresses and to be resolved. In our article (attached) we highlight some striking features of this latest crisis and draw out lessons that banks can learn for recovery and resolution planning (RRP). Etienne Michelin #challengerbanks #specialistbanks