New Webinar: Interest Rate Risk

Aligning Mission With Margin 2015

The National Federation of Community Development Credit Unions is pleased to announce the return of the popular Aligning Mission With Margin webinar series through our partnership with TCT Risk Solutions. The Federation hosts this free summer series to support credit union managers in the creation, management and maintenance of a successful, diversified lending program in today’s financial environment. Dr. Randy Thompson, TCT CEO, will present in each of four subject areas:

Session 1: Credit Migration
Session 2: Interest Rate Risk
Session 3: Liquidity Shock Test
Session 4: Lending to Credit Challenged Members Using Risk Based Loan Pricing

Register ButtonRegister once and you’re signed up for the full series. The series is free, but seats are limited.
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Session One: Credit Migration
Date: Wednesday, July 15, 2015
Time: 2:00 – 3:00 pm EDT

Credit unions face many challenges as they pursue profitable loan portfolios. Attend this session and you’ll learn why regulators and auditing firms are pressing credit unions to adopt and use effective credit migration models, and how the right models can assist in forming and maintaining effective loan policies and procedures, plus:

  • learn why so much confusion currently reigns among auditors, managers and examiners as to how best to predict loan portfolio problems and the correct methods to determine what’s needed to fund a credit union’s ALLL
  • the methods behind the best credit migration models and how these models can accurately identify, individually and categorically, the loans that are improving or digressing in quality
  • how credit migration models can be used for predicting problem loans long before they show up on delinquency reports

Session Two: Interest Rate Risk
Date: Wednesday, August 19, 2015
Time: 2:00 – 3:00 pm EDT

Credit union CEOs and Boards need accurate and usable methods for managing interest rate risk. Attend this session to learn why interest rate risk may be the primary concern for examiners when they audit financial institutions in the next several years, plus:

  • the background behind net economic value (NEV) analysis, why some examiners adhere to this method, and the perils of using a NEV asset/liability management model for managing interest rate risk
  • why earnings at risk (EaR) analysis is superior to NEV analysis, and how EaR can be used for long-term planning

Session Three: Liquidity Shock Test
Date: Tuesday, September 15, 2015
Time: 2:00 – 3:00 pm EDT

This session includes an overview of NCUA Rule Part 741.12 Liquidity and Contingency Funding Plans and its implications for credit unions and how to establish liquidity strategies and policies plus:

  • what credit unions need to do to meet the requirements of this new regulation, including reviewing the sources of liquidity, liquidity testing methodologies and shock test scenarios
  • the importance of coordinating liquidity strategies with asset/liability management
  • a deep dive into contingency funding plans and how credit unions should design them to meet regulatory expectations

Session Four: Lending to Credit Challenged Members Using Risk Based Loan Pricing
Date: Wednesday, October 21, 2015
Time: 2:00 – 3:00 EDT

Lending to credit challenged members can benefit credit unions as well as their members and communities. This session will show you how to increase your profit potential by reaching deeper into the loan market, plus:

  • the risks of loaning to primarily prime borrowers
  • the weakness in most reserves based lending (RBL) models and how the proper model helps control delinquencies and charge-offs, improve portfolio performance and optimize earnings
  • how to accurately price loans for each risk grade to assure that the additional cost of loaning to less-than-prime borrowers is factored into your loan rates
  • how to integrate RBL into your strategic plan and budgeting processes

For more information on this training series contact Jules Epstein-Hebert, Membership Program Assistant, at or call 212-809-1850, ext 211 .

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