Wake-Up Call
In the fall of 2009 the National Credit Union Administration released the results of a two-year stress test on the credit union industry. In a worst case scenario, which included a more protracted downturn in the economy, a distressed real estate market, and adverse impacts of corporate credit union...
Saved in:
Published in | Credit Union Management Vol. 33; no. 8; p. 14 |
---|---|
Main Author | |
Format | Trade Publication Article |
Language | English |
Published |
Madison
Credit Union Executives Society
01.08.2010
|
Subjects | |
Online Access | Get full text |
Cover
Loading…
Summary: | In the fall of 2009 the National Credit Union Administration released the results of a two-year stress test on the credit union industry. In a worst case scenario, which included a more protracted downturn in the economy, a distressed real estate market, and adverse impacts of corporate credit unions, NCUA predicted 519 credit union failures. Unfortunately, many credit unions choose not to respond to early warning signs that they maybe in trouble. A strong capital position can lull many boards into feeling that they are performing well and there is no need to change. The earlier in the process credit unions can honestly appraise their situation, the stronger their options for the future will be. In exploring their options, credit unions should be asking questions about how the alternative strategies facing the credit union will enhance benefits to the members and strengthen the credit union to provide a sustainable competitive advantage. |
---|---|
ISSN: | 0273-9267 |