CUs Report Liquidity Squeeze

Register now

COLUMBUS, Ind. - (09/12/05) -A liquidity squeeze at some creditunions is the primary driver behind 76% growth in the number of CUsparticipating in the SimpliCD program offered by Primary Financial,according to the CUSO that is owned by 30 coroprate CUs. Creditunions have been signing on in order to issue share certificates toother credit unions, the CUSO said. Through July of this yearlending volumes have been up 5.96% across credit unions, whilesavings have grown just 2.14%, Primary Financial noted. DuringAugust, more than $51 million was generated by CUs issuing throughthe CUSO, it said. "The increase in loan-to-share ratios is justone reason we're seeing an up tick in the number of new creditunions issuing certificates through our program," said, MarkSolomon, president and CEO of Primary Financial. Some 2,600 creditunions have participated in the program.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER