ALEXANDRIA, Va. (Jan. 26, 2017) – If you are a credit union board member, you can learn more about key ratios and how they directly affect your credit union’s bottom line in a new video module released today by the National Credit Union Administration.
Understanding Key Ratios, available now on NCUA’s YouTube channel (opens new window), examines four key ratios, what they measure and what trends signal improving or declining financial health. If you pass a quiz at the end of the series, you will receive a certificate of completion.
The five-part module is a follow-up to NCUA’s Understanding Financial Statements (opens new window) video module, which explores key line items of a financial statement. Understanding Key Ratios explains how those line items, when combined into ratios, provide quick snapshots into your credit union’s financial health.
Taken together, the two video modules will help you effectively engage in financial discussions, trend analysis and decision-making during your credit union’s board meeting.
NCUA regulations (opens new window) require federal credit union directors to have a working familiarity with basic finance and accounting practices. This knowledge includes the ability to read and understand your credit union’s balance sheet and income statements, and the ability to ask substantive questions of management and auditors.
Understanding Key Ratios is part of a comprehensive series of educational videos developed for credit union board members by NCUA’s Office of Small Credit Union Initiatives. All the videos are available on the NCUA’s Small Credit Union Learning Center webpage.
NCUA’s Office of Small Credit Union Initiatives fosters credit union development and the effective delivery of financial services for small credit unions, minority depository institutions, new credit unions and credit unions with a low-income designation. The office also publishes FOCUS, a monthly newsletter with helpful information for all credit unions.