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Feeling the Squeeze

October 2017: Vol 40 No 10
by Karen Bankston

As the rate spread tightens, credit unions face pressure to raise deposit rates.

executive squeezes a stress ball in front of a computer displaying financial charts

Member impatience that deposit rates should be rising in line with headlines touting the Federal Reserve’s decisions is putting pressure on credit unions’ net interest margin and liquidity. Asset-liability committees are feeling the squeeze.

This confluence of market conditions and depositors’ expectations exacerbates the challenge of managing interest rate and liquidity risks, cautions Jerry Boebel, consulting services senior manager with