CUs find new ways to create liquidity.

Traditionally, credit union liquidity management has relied upon selling assets and shrinking the balance sheet. Recently, a well-known consulting firm published an article that recommended this strategy, which caught my eye.

This conventional wisdom begs a simple question: Why reduce the earnings these assets produce? After all, considerable time and effort was spent to create a robust pipeline of loans or securities. Why shut it down? Member loans have obvious benefits when kept on the balance sheet.

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