ARLINGTON, Va. – Despite the turmoil of the past 12 months, corporate credit unions continue to be the major source of additional liquidity for credit unions, according to a new survey.
NAFCU’s monthly Flash Report found the most common external source of liquidity over the past year was a line of credit at a corporate (86.9%), followed by a Federal Home Loan Bank (67.2%) and the Federal Reserve’s Discount Window (37.7%). However, only 29.5% of the respondents actually used their corporate line, while 34.4% used their FHLB line.
Release of the survey comes as NCUA is expected to issue new rules governing the corporates later this week.
Despite the problems within the corporate system and at the FHLBs, only 23% of credit unions surveyed said their overall liquidity risk has increased over the past 12 months. At the same time, 34% said liquidity risk as decreased, and 42.6% said there was no change.
A growing number of credit unions are reporting lower earnings from both interest and fees, with 44.3% of respondents saying they have had a decrease in interest income and 31.1% reporting a decrease in fee income in the past year.
