|
Differential pricing standards shall be applied consistently and without discrimination to all members applying for advances or standby letters of credit. A member’s daily minimum to be eligible for differential pricing is currently set at $20 million. This may be one or a series of advances or standby letters of credit committed to by one member on the same day.
It is the objective of this policy to achieve the best price execution for the Seattle Bank on advances or standby letters of credit when using differential pricing. Senior management will monitor the use of differential pricing and provide periodic reports to the board. The job descriptions and incentive compensation goals of the employees authorized to offer differential pricing will include an evaluation of their success in achieving the bank’s goal of best price execution.
Pricing considerations include current market conditions, funding availability, the credit or other risks to the bank of lending to any particular member, the member’s alternative funding sources, the bank’s investment alternatives, and the bank’s financial position and profitability objectives.
The board, which sets the differential pricing standards, may delegate authority to interpret differential pricing standards to a committee of the board, and/or to management.
|