Liquidity Stress Testing
Liquidity Stress Testing for Credit Unions
Liquidity forecasting and stress testing are critical components of any sound risk management program. A lack of liquidity is a key component in financial institution failure… understanding how your liquidity position fluctuates with changing market and economic conditions is key to maintaining the strength of your credit union.
Strong liquidity risk management programs require projecting cash flows through a variety of possible and plausible economic environments. The goal is to push your liquidity position to failure and to identify the conditions that trigger failure.
Our industry leading liquidity forecasting and stress testing solution not only projects primary and secondary liquidity but incorporates a wide battery of stress scenarios that push and pull on the balance sheet from all sides.
Catalyst can elevate your liquidity management program, providing the key planning and decisioning tools you need to project against even the most extreme conditions.
Contact Catalyst and let’s evaluate your financial health today.
Important Disclosures:
"Catalyst" is a brand name for the financial services business conducted by Catalyst Corporate Federal Credit Union ("Catalyst"), both directly and through its subsidiaries, including CUSOURCE, LLC, d/b/a Catalyst Strategic Solutions ("CSS"). Balance sheet management services and asset liability management services are offered through CSS, a SEC registered investment adviser. CSS is a separate entity from Catalyst and all investment decisions are made independently by CSS employees. Neither Catalyst nor CSS provide its clients with legal, tax or accounting advice.
Read the NCUA's 2024 Supervisory Priorities.
Read the NCUA's Examiners Guide on liquidity.
Check out the NCUA's Liquidity Risk Resources.