Strategic Planning in a Low-Interest Rate Environment

With budgeting season right around the corner, it is important for credit unions to put their pIn just over two years, overnight rates have declined 575 basis points and now sit at 1%. Alan Greenspan continues to say that he will keep rates low as long as necessary, and would even consider dropping rates lower. Despite all of this talk, non-overnight rates have increased recently as many people sell their treasuries to search for higher yields. A rapid increase in rates would have a great impact on credit union business. As such, as credit unions enter planning season, it's important to consider planning in the context of potentially being at the bottom of an interest rate cycle.lanning in the right context. Credit unions must consider that this may be the bottom of an interest rate cycle as they approach their strategic plan.

 
 
In just over two years, overnight rates have declined 575 basis points and now sit at 1%. Alan Greenspan continues to say that he will keep rates low as long as necessary, and would even consider dropping rates lower. Despite all of this talk, non-overnight rates have increased recently as many people sell their treasuries to search for higher yields. A rapid increase in rates would have a great impact on credit union business. As such, as credit unions enter planning season, it's important to consider planning in the context of potentially being at the bottom of an interest rate cycle.
 

 

 

Aug. 11, 2003


Comments

 
 
 
  • Very timely and couldn't agree more - our planning session is scheduled for early September and this very topic will be one of two primary agenda items. Vicki Hawkins-Dort FCU-Flint, MI
    Anonymous
     
     
     
  • It would be nice if you could offer the ability to reformat the article for ease of printing
    Anonymous