PEARLS monitoring system is the only software of its kind to combine a powerful relational database with an internationally proven methodology for improving operational efficiency. It provides credit union managers with concise, easy-to-read reports that reveal institutional weaknesses and trends based on model credit union standards. It also offers a strategic business planning tool to help managers implement change. PEARLS includes the following:
Each letter of the word PEARLS measures key areas of CU operations: Protection, Effective financial structure, Asset quality, Rates of return and cost, Liquidity and Signs of growth.
PEARLS, primarily a management tool for institutions, can also be used as a supervisory tool by regulators. As a management tool, PEARLS signals problems to managers before the problems become detrimental. For boards of directors, PEARLS provides a tool to monitor management's progress toward financial goals. For regulators, PEARLS offers indicators and standards to supervise the performance of savings institutions.
PEARLS is a set of financial ratios or indicators that help to standardize terminology between institutions. In total, there are 44 quantitative financial indicators that facilitate an integral analysis of the financial condition of any financial institution. The purpose for including a myriad of indicators is to illustrate how change in one ratio has ramifications for numerous other indicators.
Each indicator has a prudential norm or associated goal. The target goal, or standard of excellence for each indicator, is put forth by the World Council of Credit Unions (WOCCU) based on its field experience working to strengthen and modernize credit unions and promote savings-based growth. Depositors can have confidence that savings institutions that meet the standards of excellence are safe and sound.