ATLANTA -- Credit unions with more than $300 million in assets keep too much cash on hand--more than $100,000 per branch on average, according to financial institution profit consultants Ceto and Associates.

The vendor, which pioneered the Federal Reserve-approved deposit reclassification loophole for Regulation D, is making the rounds with corporates, promoting its relatively new Ceto Cash Calculator (C3) product.

"As of 2007 year end, our credit union cash management users carry, on average, $225,000 per branch, compared to the industry as a whole, which carries $342,000," said Paula McKeone, strategic alliance manager, "and I really think those numbers confirms the need."

C3 analyzes cash requirements based on the institution's own usage patterns, including ATMs, denominations, and bank holidays. The software then recommends how much cash to keep on hand, as well as future order amounts, frequency and denominational breakdowns.