ATLANTA–With NCUA having largely eliminated its fixed-asset rule for credit unions, LEVEL5 has introduced a new “Fix Assets Management Plan,” or FxAMP, that provides real world analysis and guidance.
While the old 5% cap on fixed assets has been removed, NCUA made clear at its board meeting last week that its examiners will continue to monitor what credit unions are investing in fixed assets to ensure earnings and capital are not at risk.
The real question now, said Level5, is “how can credit unions best utilize this opportunity to increase member services and manage the credit union’s expansion?”
The answer, the company said, is having a management process in place. Based on its more than 12 years experience doing just that, LEVEL5 is doing just that with FxAMP, which:
- Provides a prudent management process using “real world” analysis and financial modeling.
- Allows fixed asset investments by proving the credit union is conducting prudent planning and analysis.
- Evaluates fixed assets’ impact on the credit union’s balance sheets, income statement and ratios.
- Evaluates the overall efficiency ratio, ROA, and net worth ratios.
- Quantifies fixed assets’ influence on the credit union’s non-interest expenses.
- Provides a report for internal use by the credit union’s senior management and board to develop a growth strategy that ensures proper management of any ongoing risk to earnings and capital.
- FxAMP Report also can provide examiners with the credit union’s fixed asset management strategy to ensure that earnings and capital do not encounter undue risk.
“We have a strong working knowledge of the NCUA guidelines and regulations,” the company said. “Our management solution helps our clients achieve growth objectives while observing fixed asset considerations. Our model is a real world projection illustrating how fixed assets may affect earnings and capital. The FxAMP report offers strategic leverage for senior management teams and boards to create a growth strategy while providing a management reports that show the measures taken to ensure the credit union’s safety and soundness.”
For info: http://ecom.level5.com/