4/13/2026: Credit & Liquidity
- DCG
- 3 days ago
- 2 min read
The DCG advisory consulting team starts every week with an internal discussion of market trends, regulatory developments, and the real experiences of our bank and credit union clients. Here are the notes from this week’s Monday Morning Meeting.
Check out the meeting notes from previous weeks.
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Two distinct themes emerged from this week’s meeting: credit and, as it does often, liquidity.
Credit
Industry credit metrics look strong, with losses near historic lows and manageable non-performing asset levels (although both are trending upward). Most issues that do exist are being managed without material charge-off. However, risk that is not meaningfully showing up in the numbers has arrived in our conversations with clients across the country. More credits are being monitored, isolated issues are becoming more frequent, and certain sectors are showing increased pressure.
Are there building pressures in your portfolios? Are you dissecting portfolios beyond collateral type to reflect current/potential issues (i.e., participations, relationships impacted by private credit, etc.)? Do current pricing decisions reflect current market dynamics/realities, or are competitors overly influencing pricing today?
Liquidity
The credit discussion then turned to liquidity, since credit risks and liquidity availability are intertwined and can change very quickly.
Now is the time to fortify liquidity positions. Expand deposit growth opportunities. Pledge collateral to ensure access to funds before needed. New deposit platforms, networks and structures are emerging offering alternative sources of funds and potential cost savings. Stay on top of options available in the market and make sure as many as possible are available when needed.
Liquidity management will only continue to grow in importance for our industry. That importance is exponential if/when credit metrics deteriorate.
Most data still look good, yet risks are emerging. Decisions today will determine outcomes later. Food for thought for your next ALCO meeting.
What are others seeing?
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