Capital & Balance Sheet Management Advisory

Capital is the single-most important element in the financial stability of any credit union.   Capital requirement frameworks have been the subject of detailed scrutiny since the global financial crash of 2008. The credit union movement has been no different, with increased focus placed on capital requirement frameworks.  Designing a framework to arrive at optimal capital levels is a key economic and regulatory challenge for any credit union. Undercapitalisation has obvious stability and regulatory risks, but overcapitalisation also brings adverse outcomes with an unproductive use of member funds and an inherent financial inefficiency.  Designing a capital management plan is a key emerging requirement for forward oriented credit unions. This requires finance skills, a firm understanding of risk management principles and an awareness of the Irish regulatory environment.  We have these skills in Moore Stephens and can assist you in designing a capital management plan.  This will involve forward looking projections and financial strategies that are correlated to influencing capital levels, or leveraging upon capital levels. We have completed a number of capital management plans for credit unions in a variety of contexts.