WASHINGTON-In a sign of future troubles, the loan delinquency rate for credit unions moved up in November to almost 1.3%, from almost 1.2% the month before, according to CUNA.
The increase portends higher loan charge-offs and losses, according to Bill Hampel, chief economist for the group, who called it a "notable increase."
Hampel and his staff, which produces the widely read monthly credit union estimates, predict savings growth will continue to rise, as consumers seek to sock away funds for the rainy days ahead, while loan growth will slow.
Another noteworthy indicator, pointed out Hampel, is that net capital fell below 11% for the first time in a few years.
He predicted the credit union industry as a whole will report a return-on-assets of just 50 basis points (0.50%) for 2008, the lowest in decades.
