White Paper

Managing Deposits Through Interest-Rate Cycles

By Beth Stetenfeld

posted 08.22.2017 (cfo)

The CUNA CFO Council has published a new white paper, “Managing Deposits Through Interest-Rate Cycles”.

Credit union CFOs face significant challenges as they strive to effectively manage deposits in the current rate environment—a much different scenario than during the most recent early to mid-2000s rising-rate environment.

Some CFOs have never experienced rising rates during their professional lives. Those who have remark how this time it’s much different. This white paper examines issues relating to shifting interest rate trends, along with:

• Best practices for managing money through these interest-rate cycles,
• Suggestions on managing margin and liquidity concerns,
• Areas where the rising deposit rate environment affects lending strategy,
• Consumer/borrower response to rising rates,
• The affect of the lending side of the equation on pricing decisions,
• Cross-departmental collaboration with lending and marketing on pricing for success, from a margin and a competitive perspective,
• The ripple effect of rising rates on other credit union projects and initiatives, and
• Tools to help mitigate any potential ripple effect and risk.