Liquidity

Stress testing to help you measure limits and impacts.

Our liquidity tool can identify two primary factors affecting liquidity in a credit union.They are changes in deposit balances (increase or run-off) and changes in loan balances (loan payments and new loans funded). Measuring changes in these factors can provide a meaningful and statistically valid examination of the liquidity risk at the credit union.

It is a well-established practice for credit unions to examine the impact of anticipated changes in interest rates to measure Interest Rate Risk. We can examine changes in deposits and loan levels to shock liquidity and assess your current liquidity limits.

Shock test different scenarios to measure their impact.

Our liquidity tool also performs shock tests. This tool is delivered online and offers management the opportunity to create multiple scenarios and then employ them into the tool in order to measure their impact on liquidity. The tool includes three scenarios that allows a credit union to establish a measure of current liquidity as a baseline and then utilize the remaining two scenarios to test changes in deposit and loan balances.

Managing liquidity just got easier.

Credit Unions are expected to implement programs to manage liquidity in an ongoing and effective manner. In order to do this leaders must set limits, implement tools to monitor and measure liquidity and then utilize output to adjust operations to maintain optimum levels. Liquidity plans must include both Balance Sheet Cushion and a contingency fund components to be complete.

Our liquidity tool provides a simple and valid measurement that can support compliance to regulation in a credit union.

Did you know all of our solutions are interconnected?

Learn how they work together to increase your managerial effectiveness.

How It Works