The case scenario illustrate the situation facing Vancity in the wake of the 2008 fiscal disaster, in an environment where monetary policy was used to stimulate the market. The immediate choice was whether to increase interest rates on loans to compensate for dropping interest income.
With close to zero per cent interest rates being recommended by the Bank of Canada, the spread between deposit and loan rates had narrowed to unprecedented amounts. The situation was complicated for Vancity by its construction as a member-owned cooperative and its strategy of community engagement, along with by its need to get members to sign consent to the rate change.
Vancity Doing Good, Doing Well Case Study Solution
PUBLICATION DATE: September 03, 2010 PRODUCT #: 910M69-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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