Please enable JavaScript.
Coggle requires JavaScript to display documents.
DIFFERENCE BETWEEN CORPORATION AND A CREDIT UNION (INVESTMENT STRATEGYS…
DIFFERENCE BETWEEN CORPORATION AND A CREDIT UNION
DIFFERENT ANALYSIS
PEER GROUP ANALYSIS: A PROCESS OF COMPARING A COMPANY TO A GROUP OF COMPANIESIN THE SAME BUSINESS OR SIMILAR MARKETS
TREND ANALYSIS: IS THE COMPARISON OF A PARTICULAR PERFORMANCE INDICATOR OVER SUCCESSIVE TIME PERIODS. IT ILLUSTRATES CHANGES OVER TIME
RATIO ANALYSIS: IS A COMPARISON OF DIFFERENT PIECES OF FINANCIAL INFORMATION TO IMPART A USEFULL PERFORMANCE INDICATOR. RATIOS ELIMINATE THE SIZE PROBLEM AND FACILITATE COMPARISONS AMONG DIFFERENT COMPANIES
DIVIDENDS: CORPORATIONS DIVIDENDS ARE PAID TO SHAREHOLDERS AFTER TAXES AND THE PERSON RECEIVING THE DIVIDENDS PAYS THE TAX BUT ALSO GETS A TAX CREDIT TO OFFSET.
FOR A CREDIT UNION DIVIDENDS PAID TO MEMBERS ARE DEDUCTED AS AN EXPENSE BEFORE TAXES AND IS TAXED IN THE HANDS OF THE RECIPIENT AS INTEREST
INVESTMENT STRATEGYS
INTEREST-RATE RISK
INCOME
LIQUIDITY
SAFETY OF PRINCIPAL
NON EARNING ASSEST
NON PERFORMING LOANS
FIXED ASSETS
PROPERTY FOR RESALE
ACCRUED INTEREST NOT YET COLLECTED
LIABILITES
LOANS FROM CU CENTRAL
MEMBER DEPOSITS
DEPOSITS
DEMAND DEPOSITS
TERM DEPOSITS
DEMAND SAVINGS
EQUITY
RETAINED EARNINGS
MEMBER SHARES
FINANCIAL MARGIN
THE RATIO OF INTEREST BEARING ASSETS TO INTEREST BEARING LIABILITIES IS AN IMPORTANT FACTOR; THIS EQUALS NET INTEREST INCOME OR FINANCIAL MARGIN.
THE BETTER THE RATIO THE BETTER THE FINANCIAL MARGIN; ANYTHING OVER 1.0 MEANS A PORTION OF THE CU'S INCOME EARNINGS ASSETS ARE BEING FUNDED BY A ZERO COST SOURCE OF FUNDS
EARNING TO COSTING RATIO: EARNING ASSETS/COSTING LIABILITIES.
TO IMPROVE THIS RATIO EXAMPLE; REDUCE THE AMOUNT OF NON PERFORMING LOANS AND INCREASING CORE DEPOSITS
FINANCIAL RISK: HIGHER YIELDING ASSETS HAVE A HIGHER RISK.
TO IMPROVE ASSET YIELD;
LOWER LIQUIDITY: OPERATE WITH THE MINIMUM LEVELS OF LIQUIDITY SINCE LIQUID INVESTMENTS EARN LOWER AMOUNTS OF INTEREST THAN LENDING TO MEMBERS.
HIGHER YIELD LOANS HIGHER RISK
GREATER INTERET RATE RISK FROM FUNDING LONGER TERM LOANS WITH DEMAND DEPOSITS