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Rate Committee

  • 1.  Rate Committee

    Posted Feb 26, 2020 09:27 PM
    Does anyone have an Rate Committee that's separate from ALCO? If so, do you have a commitee charter you would be willing to share?

    Tom Allman
    VP/Chief Strategy Officer
    NASA FCU



  • 2.  RE: Rate Committee

    Posted Feb 27, 2020 07:26 AM
    We have one Tom...no specific charter as it was a creation of our own management design.  It's a democratic process with Finance, Loan and Deposit SVPs and other as hoc voting members. Minutes of discussions and votes are taken and are available to our Board and Regulators.

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    Bernard McLaughlin
    President/CEO
    Point Breeze CU
    Hunt Valley MD
    410.771.3850
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  • 3.  RE: Rate Committee

    Posted Feb 28, 2020 05:46 AM
    Thanks Bernard - That's similar to how we operate today and it has served us well. Really looking to have something at the ready should we move to make it a formal committee.

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    Tom Allman
    Chief Strategy Officer
    NASA Federal CU
    Upper Marlboro MD
    301.249.1800
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  • 4.  RE: Rate Committee

    Posted Feb 27, 2020 08:18 AM
      |   view attached
    Hi Tom,

    Here at PAHO/WHO FCU we have a Pricing Committee separate from our ALCO built on the model that I established at Northwest Federal back in 2015. I have attached the Committee charter for your convenience. The following excerpt is from our Funds Management Policy which gives authority to the Pricing Committee officially. Please let me know if you want to discuss further. I am just a phone call (or a short ride) away.

    III. Pricing Committee

     

    The Pricing Committee will serve as a Management Committee governed by the Pricing Committee Charter which shall be subject to revisions by the ALCO. The Pricing Committee will be responsible for the operational aspects of financial management for the Credit Union including product pricing strategy which may include promotions, interest rate changes, and fees as governed by the Charter. The Pricing Committee may periodically be delegated other duties as assigned by the Board, ALCO, or the CEO. The Pricing Committee will report to the ALCO as dictated by the Committee's Charter which will be approved by the CEO.

     

    The voting membership of the committee shall consist of the Chief Executive Officer, the Chief Financial Officer, the Vice President of Operations, and the Vice President of Business Development, the Lending Manager, and the Business Development Manager. Others may be invited to attend the meeting periodically or on standing basis as needed. A quorum will be determined by the presence of at least three committee members.

     

    The committee will have the authority to set the schedule of fees, move rates on deposits and loans by 100 basis points each month, create promotional offers, and determine new product offerings including pricing. Communication of rate changes and promotional offerings will be made to the Board within thirty (30) days of any such changes.



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    Derek Fuzzell CPA, CMA, CSCA
    Chief Financial Officer
    PAHO/WHO FCU
    Washington DC
    202.974.3453
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    Attachment(s)



  • 5.  RE: Rate Committee

    Posted Feb 28, 2020 07:36 AM
    Typically our ALCO also deals with rates and it has worked out over the years.  Based on the comments it does seem like others have it separate.  Out of curiosity why did you and other credit unions decide to go with a pricing committee separate from ALCO?

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    Tammy Buchanan CPA CGA
    AVP/Finance/Strategic Risk
    Northern CU Ltd
    Sault Ste Marie ON
    705.949.6444
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