Case Name :      Vancity: Doing Good, Doing Well

Authors :           Saul Klein

Source :             Ivey Publishing

Case ID :            910M69

Discipline :        General Management

Case Length :    08 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

The case describes the situation facing Vancity in the wake of the 2008 financial crisis, in an environment where monetary policy was being used to stimulate the economy. The immediate decision facing the CEO was whether to raise interest rates on loans to make up for falling interest income. With close to zero per cent interest rates being advocated by the Bank of Canada, the spread between deposit and loan rates had narrowed to unprecedented levels. The situation was complicated for Vancity by its structure as a member-owned cooperative and its strategy of community engagement, as well as by its need to get members to sign consent to the rate change.