Liquidity Tightens As CU Loan GrowthContinues

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MADISON, Wis. - (11/04/04) -- Lending at credit unions continuedto expand at a strong pace, 0.6%, in September, pushingyear-to-date loan growth to 8.4%, up from 7% at the same point lastyear, according to CUNA. But savings growth continued to slow,rising by 0.3% for the month, pushing down year-to-date savingsgrowth to 4.2%, down from 8.5% for the same period last year. As aresult, the loan-to-share ratio, the industry's key liquidityindicator, rose to 74.2% at the end of September, the highest inthree years. For September, home equity loans grew 2.8%;adjustable-rate mortgages rose 2.4; and other mortgages by 2.1%.New car loans rose by 0.7% and used car loans by 0.5%. Fixed-ratemortgages declined by 0.8% and unsecured personal loans fell by0.7%.

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