| P - Protection | Goals (Excellence) | | 1. Loan Losses Allowances / Delinq. >12 Mo. | 100% | | 2. Net Loan Loss Allowances / WOCCU Allowance Required for Delinq. 1-12 Mo. | 35% | | 3. Complete Loan Charge-off of Delinq. > 12 Mo. | Yes
| | 4. Annual Loan Charge-offs / Average Loan Portfolio | Minimized | | 5. Accum. Charge-offs Recovered / Accum. Charge-offs | > 75% | | 6. Solvency (Net Value of Assets/Total Shares & Deposits) | ≥ 111% |
E - Effective Financial Structure
| Goals (Excellence) | | 1. Net Loans / Total Assets | 70-80% | | 2. Liquid Investments / Total Assets | ≤ 16% | | 3. Financial Investments / Total Assets | ≤ 2% | | 4. Non-financial Investments / Total Assets | 0% | | 5. Savings Deposits / Total Assets | 70-80% | | 6. External Credit / Total Assets | 0-5% | | 7. Member Share Capital / Total Assets | ≤ 20% | | 8. Institutional Capital / Total Assets | ≥ 10% | | 9. Net Institutional Capital / Total Assets | ≥ 10% |
A - Asset Quality
| Goals (Excellence) | | 1. Total Loan Delinquency / Gross Loan Portfolio | ≤ 5% | | 2. Non-earning Assets / Total Assets | ≤ 5% | | 3. Net Zero Cost Funds / Non-earning Assets | ≥ 200% |
R - Rates of Return and Costs
| Goals (Excellence) | | 1. Net Loan Income / Average Net Loan Portfolio | Entrepreneurial Rate | | 2. Liquid Inv. Income / Avg. Liquid Investments | Market Rates | | 3. Fin. Investment Income / Avg. Fin. Investments | Market Rates | | 4. Non-fin. Inv. Income / Avg. Non-fin. Investments | ≥ R1 | | 5. Fin. Costs: Savings Deposits / Avg. Savings Deposits | Market Rates > Inflation | | 6. Fin. Costs: External Credit / Avg. External Credit | Market Rates | | 7. Fin. Costs: Member Shares / Avg. Member Shares | Market Rates, > R5 | | 8. Gross Margin / Average Assets | ˆE9=10% | | 9. Operating Expenses / Average Assets | ≤ 5% | | 10. Provisions for Risk Assets / Average Assets | ˆP1=100%, ˆP2=35% | | 11. Other Income or Expense / Average Assets | Minimized | 12. Net Income / Average Assets (ROA)
| ˆE9=10% |
L - Liquidity
| Goals (Excellence) | | 1. Liquid Assets - ST Payables / Total Deposits | 15-20% | | 2. Liquidity Reserves / Total Savings Deposits | 10% | | 3. Non-earning Liquid Assets / Total Assets | < 1% |
S - Signs of Growth (Annualized Rates)
| Goals (Excellence) | | 1. Net Loans | ˆE1=70-80% | | 2. Liquid Investments | ˆE2 ≤ 16% | | 3. Financial Investments | ˆE3 ≤ 2% | | 4. Non-financial Investments | ˆE4=0% | | 5. Savings Deposits | ˆE5=70-80% | | 6. External Credit | ˆE6=0-5% | | 7. Member Shares | ˆE7 ≤ 20%
| | 8. Institutional Capital | ˆE8 ≥ 10%
| | 9. Net Institutional Capital | ˆE9 ≥ 10%
| | 10. Membership | ≥ 15% | | 11. Total Assets | > Inflation + 10%
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ˆ Amount Needed
©2003 World Council of Credit Unions, Inc. (WOCCU)
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