Start planning post-COVID-19 investment strategies now

first_imgThe impact of the COVID-19 pandemic on credit union income statements won’t be clear for many months or even years, but it’s not too soon to consider some long-term recovery strategies. One of these could be shifting more of your investments to those allowable for employee benefits pre-funding programs and/or charitable donation accounts.Some of the most likely income losses from this crisis include:Net interest margin: Restructuring loans at lower rates and deferring loan payments will hurt net interest margins. A flight to safety by members could also result in credit unions parking excess liquidity in short-term investments due to increasing interest rates that make long-term bonds unattractive.Fee and other income: The National Credit Union Association issued guidance on March 16 about reducing or waiving fees for non-sufficient funds, skip-pays, loan restructurings and foreign ATM usage. continue reading » 6SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblrlast_img

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