BIRMINGHAM, Ala.—Dollar Associates will host a webinar Today from 2 p.m.-3 p.m. ET to address the deposit influx at credit unions and how daily deposit management is becoming a priority.
“The last 18 months have seen deposit increases in the range of 20% for many credit unions. Not only has this growth in deposits created an earnings issue with the tight margins today, but this deposit influx has had a significant impact on capital ratios, loan-to-share and return on assets,” noted Dollar Associates. “While enhanced lending initiatives, expanding into more diversified lending products and perhaps going deeper into the loan pool have been employed by some credit unions in an attempt to put this excess liquidity to work with an increased return, the reality is that loan growth in this market has not kept up with deposit growth and – in many cases – have trailed it two to one.”
According to Dollar Associates, an increasing number of credit unions have begun looking for ways to manage their balance sheet on the deposit side, and there is a growing movement in credit unions to put in place daily deposit management programs to serve depositors with more options and to take some deposits off balance sheet.
‘Diversified’ Investment
“Members have responded well because it often strengthens their federal deposit insurance coverage and gives them a single source—your credit union—that can manage a diversified deposit investment for them,” Dollar Associates said.
The company said the concept of daily deposit management for community banks and credit unions will be addressed at the webinar by the New York-based consulting firm Reich and Tang.
“They are the recognized leaders in this space,” Dollar Associates said.
For information and to register, go here.