ALEXANDRIA, Va.–NCUA has released a new video module aimed at credit union board members that offers insights into key ratios and how they directly affect a credit union’s bottom line.
“Understanding Key Ratios,” available now on NCUA’s YouTube channel, examines four key ratios, what they measure and what trends signal improving or declining financial health. Those who pass a quiz at the end of the series will receive a certificate of completion, the agency said.
“The five-part module is a follow-up to NCUA’s Understanding Financial Statements video module, which explores key line items of a financial statement,” the agency said. “Understanding Key Ratios explains how those line items, when combined into ratios, provide quick snapshots into your credit union’s financial health. Taken together, the two video modules will help you effectively engage in financial discussions, trend analysis and decision-making during your credit union’s board meeting.”
NCUA noted its regulations require federal credit union directors to have a working familiarity with basic finance and accounting practices. This knowledge includes the ability to read and understand your credit union’s balance sheet and income statements, and the ability to ask substantive questions of management and auditors, NCUA said.
Understanding Key Ratios is part of a comprehensive series of educational videos developed for credit union board members by NCUA’s Office of Small Credit Union Initiatives. All the videos are available on the NCUA’s Small Credit Union Learning Center webpage.