SAN DIEGO -- Credit unions offering member business loans should consider adding business deposits as they provide a lower cost of funds, Margaret Dengler Ross, NCUA member business lending program officer, recently advised.

Ross was one of the keynote speakers at NACUSO's recent business services alliance in San Diego. Tying her presentation to NCUA letter to credit unions 08-CU-20, which addresses evaluating risks, Ross encouraged the industry to "to read and review to understand what examiners have been instructed to look for, and also good practices to implement."

"It's important to look at the risks that are changing and determine in advance what kind of corrective action might be necessary, rather than waiting to see what changes," Ross said. "Regarding business services, it's important to understand that business deposits may provide a lower cost of funds. It's a resource that credit unions offering MBLs should consider."

Credit unions offering member business lending should proactively and continually validate that risk assessments are current and relevant, Ross also advised, adding credit unions should make sure due diligence is up to date and be aware of changes happening around them.