A credit union’s balance sheet is a psychological artifact. To know if your CEO is ready for the next credit cycle, boards must look beyond past financial metrics and evaluate their risk disposition and emotional intelligence.
A proposed 10% interest rate cap represents a singular, exogenous shock to the credit union system. Our analysis of 80 portfolios reveals a $163 million "profitability gap" that threatens to dismantle rewards programs and force the redlining of near-prime members.
Economic indicators show growth, but members feel stress. This is the K-Shaped economy. Relying on "average" data creates a dangerous blind spot that masks the distress of your most vulnerable members.
