We allow for limited price matching on competitors CDs. Must fit within a range of our pricing for a full relationship customer and we limit balance to $100K.
Anything out of these parameters are decided by CFO based on a number of factors and timing.
We subscribe to a weekly rate survey.......however, the rates most provide are not current or accurate. Adjusting of rates typically occur each month and we try to time them with the first of the month. However, currently rates are moving faster, so updates are made as needed.
Thanks
------------------------------
Richard Burch
Executive VP, Secretary & CFO
South Atlantic Bank
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Original Message:
Sent: 06-02-2018 22:46
From: Neil Stanley
Subject: Rate Matching for Deposits
With the growing stress on funding and rising interest rates retail deposit pricing becomes increasingly critical to financial performance. Recently someone posted a question in another industry forum about the "best practices" for deposit rate matching. I was surprised by the dialogue that followed where price matching appeared to be a fairly common practice today. I am curious if among this group of bank executives there is acceptance of deposit rate matching as an endorsed practice for your retail deposits. If you are matching competitor rates, how are retail deposit rates set, by whom, and how frequently do you update pricing? How do you create effective governance and boundaries while you are letting the competition have so much influence on the pricing of your deposits?
------------------------------
Neil Stanley
President of Community Banking
TS Banking Group
Treynor, Iowa
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Anything out of these parameters are decided by CFO based on a number of factors and timing.
We subscribe to a weekly rate survey.......however, the rates most provide are not current or accurate. Adjusting of rates typically occur each month and we try to time them with the first of the month. However, currently rates are moving faster, so updates are made as needed.
Thanks
------------------------------
Richard Burch
Executive VP, Secretary & CFO
South Atlantic Bank
------------------------------
-------------------------------------------
Original Message:
Sent: 06-02-2018 22:46
From: Neil Stanley
Subject: Rate Matching for Deposits
With the growing stress on funding and rising interest rates retail deposit pricing becomes increasingly critical to financial performance. Recently someone posted a question in another industry forum about the "best practices" for deposit rate matching. I was surprised by the dialogue that followed where price matching appeared to be a fairly common practice today. I am curious if among this group of bank executives there is acceptance of deposit rate matching as an endorsed practice for your retail deposits. If you are matching competitor rates, how are retail deposit rates set, by whom, and how frequently do you update pricing? How do you create effective governance and boundaries while you are letting the competition have so much influence on the pricing of your deposits?
------------------------------
Neil Stanley
President of Community Banking
TS Banking Group
Treynor, Iowa
------------------------------
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