Jan 01 2005

Predicting and Managing a Credit Union's Expense Ratio


This monograph reports on research that has created a new tool to help credit unions manage their expenses, as measured by the expense to asset ratio.

This tool allows benchmarking that takes into account a number of a credit union’s individual characteristics. It also allows for simulation of the effects on the expense ratio of changes in each of a number of variables, while holding the others constant. This allows credit unions to see the distinctive characteristics that affect their expense to asset ratio independently of other effects.

The text explains the tool and illustrates its use. The appendix provides the specifics of how the tool was created and how individual credit unions can calibrate and apply it to their particular circumstances.

Report Number 105