Set targets for risk and return

A prudent approach to preparing for the future is to examine the interest-rate risk of a credit union's balance sheet under a variety of interest-rate scenarios. Instead of targeting a yield on the investment portfolio, credit unions should strive to set targets for variables that encompass bot...

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Bibliographic Details
Published inCredit union magazine Vol. 65; no. 9; p. 104
Main Author De Lay, Beth
Format Magazine Article
LanguageEnglish
Published Madison Credit Union National Association, Inc 01.09.1999
Subjects
Credit unions
Goal setting
Interest rate risk
Interest rates
Investments
Liability
Loans
Return on assets
United States > US
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Summary:A prudent approach to preparing for the future is to examine the interest-rate risk of a credit union's balance sheet under a variety of interest-rate scenarios. Instead of targeting a yield on the investment portfolio, credit unions should strive to set targets for variables that encompass both risk and return, recognizing that it can manage both income and expenses. A good target to set is returns on assets.
ISSN:0011-1066