Testing Strategic Financial Goals, Analyzing CU Ratios the Topics of Two New White Papers

CUNA Councils
August 28, 2008 | COMMENTS

Testing strategic financial goals and analyzing credit union financial ratios are the subjects of two new white papers by the CUNA Chief Financial Officers (CFO) Council.

“Testing a Strategic Financial Vision: Using a Simple Financial Planning Model” explains how to test a credit union’s strategic financial goals over an extended period of time. Using a simple simulation model that creates future balance sheets, income statements, and financial ratios, the paper focuses on capturing key financial aspects of the plan in a strategic financial vision. It also outlines key testing issues and includes an operating manual for using this model.

The second white paper, “Credit Union Financial Ratios: Twenty-Plus Years of Data and Analysis,” explains what can be garnered by analyzing financial ratios over a 22-year period. It examines the conclusions that can be made about financial changes, impacts of competition, changed regulation, and the basic safety, soundness, and competitiveness of the industry. A complete 22-year listing of more than 50 ratios is included in the appendix.

CUNA Council members are entitled to complimentary copies of these white papers; non-members may purchase the white papers for a price of $50 per copy.

The papers are available online in the white paper section of each council site - select the “CFO” tab for both white papers.