News & Insights

It is not every day that a Young Professional (YP) gets to enjoy the same space as C-suite employees, learning and engaging in seminars filled with CEOs, COOs, CFOs and other passionate credit union leaders. In retrospect, I realize how privileged I was to attend Catalyst Corporate's 45th annual Economic & Payments Forum.

Catalyst Corporate reaffirmed its commitment to Cybersecurity Awareness Month (CAM) as a Champion participant for the seventh consecutive year. Founded in 2004, Cybersecurity Awareness Month, held each October, is the world’s foremost initiative aimed at promoting cybersecurity awareness and best practices.

Over the second quarter of 2022, interest rate risk has seen pronounced movement, with many credit unions concerned about the impact on the NEV Supervisory Test. The 0.75% increase in the Fed Funds Target Rate at the June Federal Open Market Committee meeting, due to a hot CPI print, came to the markets somewhat unexpectedly (another followed in July).

At the beginning of 2022, the NCUA instituted the Subordinated Debt Regulation which replaced the Secondary Capital Rule. This regulation permits credit unions to issue subordinated debt as a way to boost their capital position. As more credit unions look to issue subordinated debt, you are likely to see opportunities to invest in these credit union-issued subordinated debt notes.

Is your credit union considering an investment in Subordinated Debt? If so, carefully evaluate your potential issuers. Five key areas can help determine their strength: growth trends, loan quality, earnings capacity, liquidity and planned use of funds.

Today’s financial services market is more competitive than ever. For nine years, I have worked as an Asset & Liability Management (ALM) Consultant at Catalyst. To ensure our services continue to surpass those delivered by our competition, Catalyst encourages ongoing education. As such, I decided to extend my credit union education starting this July in Fort Worth, Texas.

Human exploitation, lost/stolen credentials or scams that compel consumers to divulge or expose personal information keep payments fraud on the rise. Fraud via lost and/or stolen credentials alone increased nearly 80% over 2020, according to a 2022 Identity Fraud Study from Javelin Strategy & Research. With the addition of scam-related fraud, losses totaled $52 billion and affected 42 million U.S. adults.

The Federal Open Market Committee (FOMC) raised the Fed Funds rate by 75 basis points on June 15 in an aggressive move to tamp down inflation that has weaved its way into the economy. The FOMC also signaled they may increase the overnight target rate to a range of 3.00-3.50% by the end of the year.

Whether it’s at the gas pump or in the supermarket, consumers are already feeling pressed by higher prices on daily necessities. What will this mean for your deposit offering rates over the same period? Given the upcoming credit and interest rate challenges, selective credit lending and a well-balanced investment ladder could help stabilize the anticipated uncertainty.

Jeff Hamilton, Catalyst Corporate Vice President of Member Credit, spoke at the recent CUNA Finance Council Conference at Caesars Palace in Las Vegas, Nevada. His session, on Monday, May 23, focused on loan participations as a winning strategy for credit unions.