Asset/Liability Management (ALM) is the process of ensuring that a credit union remains financially viable through adequate capital, stable earnings, and sufficient liquidity, and interest rate risk management. Cornerstone League's intention is to provide ALM analysis and instruction to member credit unions in order to promote financial well-being.
Based on National Credit Union Administration (NCUA) 5300 Call Report data, the Key Ratio Analysis Report is a comprehensive report analyzing key ratios relating to capital adequacy, earnings stability, asset quality, liquidity, and interest-rate risk. This report also includes an expense analysis for the credit union.
An Excel-driven spreadsheet enables credit unions to identify historical trends in liquidity and establish minimum acceptable needs for future liquidity, allowing credit unions to manage and monitor liquidity and maximize investment return.
This service is a Cornerstone League member benefit. If your credit union is not currently a member and you would like to learn more, visit the Benefits of Membership page.
Credit unions looking for in-depth and personalized Asset/Liability Management assistance can rely on fee-based services.