Liquidity Framework Review
Overview
Liquidity risk, along with credit risk and interest rate risk, are the three main types of market risks facing a credit union. The NCUA has several rules and regulations overseeing effective liquidity risk management, with a focus on liquidity policies, procedures, limits, and monitoring capabilities. Credit unions should expect examiners to thoroughly evaluate the adequacy of their liquidity risk management framework.
Key Benefits
QuantyPhi offers a comprehensive Liquidity Framework Review service that aims to enhance credit unions' liquidity management practices. Our highly skilled financial experts conduct an in-depth analysis of the credit union’s existing liquidity framework, assessing the adequacy and effectiveness of current strategies. Based on this analysis, we provide customized recommendations and best practices tailored to each credit union’s unique needs, goals, and risk appetite. With a deep understanding of regulatory requirements, QuantyPhi ensures that the liquidity management framework aligns with industry standards and complies with applicable regulations. Our service also includes a thorough risk evaluation, identifying potential risks associated with liquidity management and offering strategies to mitigate these risks. Additionally, we provide specialized training and ongoing support, equipping credit unions with the skills and knowledge needed to implement recommended enhancements and maintain robust liquidity management practices. By reviewing your liquidity framework against examiner requirements, industry best practices, and current liquidity threats, we aim to help you strengthen your overall liquidity risk management program and successfully implement any desired changes.
Our liquidity experts will review critical areas of your liquidity framework, including:
- Liquidity policy and procedures
- Limits for liquidity measures and reporting requirements
- Primary and secondary sources of liquidity
- Tools for liquidity risk management
- Contingency funding plan
- Liquidity limits
- Contingent federal liquidity source, if applicable
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