Liquidity Squeeze Cited For SimpliCD Growth
A liquidity squeeze at some credit unions is the primary driver behind 76% growth in the number of CUs participating in the SimpliCD program offered by Primary Financial, according to the CUSO that is owned by 30 coroprate CUs.
Credit unions have been signing on in order to issue share certificates to other credit unions, the CUSO said. Through July of this year lending volumes have been up 5.96% across credit unions, while savings have grown just 2.14%, Primary Financial noted. During August, more than $51 million was generated by CUs issuing through the CUSO, it said. "The increase in loan-to-share ratios is just one reason we're seeing an up tick in the number of new credit unions issuing certificates through our program," said, Mark Solomon, CEO of Primary Financial. Some 2,600 credit unions have participated in the program.