Revive ALM to survive and thrive: Volatile interest rates are forcing CUs to dust off their ALM playbooks

Effective asset/liability management is a central tenet of well-run credit unions. And when interest rates are so volatile, credit unions must ensure they are properly managing interest-rate risk. Making sure that risk does not get out of control, through proper ALM practices, is an integral part of credit unions' daily operations. The National Credit Union Administration has adopted a more aggressive stance toward monitoring credit union risk. Even given their not-for-profit status, credit unions must be concerned about their net worth because net worth protects members' deposits.