2010 Was Worst Year In Three Decades For CU Lending
MADISON, Wis. – Credit union lending declined another 0.2% in December, after a similar drop in November, pushing lending to a negative 1.43% for 2010, the worst in more than 30 years, according to CUNA.
That figure is the worst since at least 1980, when the national recession combined with Carter administration policy to dampen loan demand and push it into the negative.
Home equity loans, ARMs and new auto loans continued to fall last month, as they did for much of the year. The decline in lending had a positive effect on the delinquency ratio because of the smaller base, so the ratio fell to 1.7% at year-end.
Loan growth was 1.20% for 2009.
There was some growth in credit card loans, fixed-rate mortgages and used car loans, according to CUNA.
Savings grew slightly in December, by 0.6%, to come in at 4.49% growth for the year, less than half the 10.33% growth in 2009 and the lowest since 2006.