CUNA Economist Offers Sunny Outlook, WithClouds
ORLANDO, Fla. - (06/16/06) CUNA economist Bill Hampel gaveFuture Forum attendees an optimistic credit union forecast for therest of 2006 and into 2007. Return-on-average-assets will rise to0.80% next year from this years forecasted 0.73%. Net WorthRatio (capital) will remain near 11%, prompting Hampel to scold,saying, Most of you have loan policies that are too tight. Capitalabove 8% is too high. Overcoming objections from examinerswhenever there is slippage in the numbers puts credit unions on thedefensive, Hampel offered. Stand up to the examiners.Thats part of your job. Its also your job to pleasethe members (which entails providing more needed loans). The job ofexaminers is to protect the insurance fund by protecting net worthratio and net income. I understand that once youve earned aCAMEL 1 that any drop looks like a trend to them. But if you keep aCAMEL 1 too long Id say youre pleasing the examinertoo much and the members not enough.