This opinion piece looks at different approaches to asset/liability modeling with IRR in mind.
Liquidity management and contingency funding planning also in package.
In light of the financial challenges faced by credit unions over the past few years and specifically the increasing interest rate risk that comes with many credit unions borrowing short to lend long, the NCUA has refocused its attention on asset-liability management functions.
An asset-liability management model makes a number of complex calculations for computing your credit union’s interest rate risk. The model’s results depend on the assumptions and whether the model was set up correctly to handle them.