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Strategies Help Position Credit Unions for Remainder of 2016
Tuesday, July 19, 2016 6:35 AM

As the first six months of 2016 have passed, this year’s economy is proving to be a continuation of the “new normal” with slow growth, low inflation, and continued high monetary stimulus.

In the U.S., GDP in the first quarter was a non-exciting 1.1 percent, following a non-exciting 1.4 percent and 2.0 percent in the prior two quarters. Even with a positive, albeit tepid, projection for consumer spending and international trade, current GDP forecasts do not exceed 2.5 percent for the rest of 2016 or 2017.

“The flat rate environment really does present immense challenges, especially when you’re running a financial institution,” said Aaron Martini, one of Catalyst Strategic Solutions’ front-line experts who shared some of these economic challenges, insights and strategy during a video released July 13.

Titled, “Will the Flat-Rate Environment Flatten You, Too,” the mid-year economic update includes a moderated panel discussion, during which Catalyst Strategic Solutions experts address the current flat rate environment and offer insights for the future. Topics include loan growth, liquidity, credit risk, investments, and regulatory concerns.

Panelists are: Aaron Martini, Catalyst Strategic Solutions’ Manager of ALM Client Services; Ben Lemoine, advisor at Catalyst Strategic Solutions; and Mike McGinnis, vice president of Investment Sales at Catalyst Corporate.

The video delivers information relevant to credit unions in an engaging visual format, with insights for balance sheet management and operational efficiencies.

“Liquidity continues to be a hot topic, and it has a tendency to ebb and flow with changing market conditions,” said Lemoine. “As a result, managers are going to have to develop a dynamic cash-flow model if they haven’t already done so. They also have to become experts in their liquidity sources […] and understand the rate sensitivity of their members’ deposits, as well as the seasonality of the inflows and outflows of those deposits.”

You can view the presentation here, or go to the Financial Management Training section under the Learning Center tab at catalystcorp.org.

Catalyst Corporate is an endorsed five-star business partner of Credit Union Resources, a wholly owned subsidiary of the Cornerstone Credit Union League.