X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Since the financial crisis in 2008, the interest rates and returns credit unions have been able to obtain through investing excess cash has been at historically low levels. While rates have been near zero, there has been little incentive for management to change their investment methods to increase yields on what has been considered to be “not worth the effort.” Investing in longer-dated maturities has also been viewed as “not worth locking up your liquidity for a few extra basis points.” Thus, many credit unions have maintained cash balances in excess of their actual forecasted and regulatory required needs and invested them in less-than-optimal strategies. Yet, the opportunity for yield improvement is huge, as U.S. credit unions have approximately $1.3 trillion in assets, $400 billion of which is in cash and investments.

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2019 ALM Media Properties, LLC. All Rights Reserved.