WASHINGTON The NAFCU Board on Wednesday met with the Federal Reserve to discuss credit union issues and present the findings of its “
The meeting was hosted by Federal Reserve Board Governor Jeremy Stein.
“Our 2013 NAFCU Report on Credit Unions shows that credit unions serve a vital role in our nation’s economy,” said Dan Berger NAFCU’s president and CEO. “This is the 21st year that the association is meeting with the Federal Reserve, and we appreciate the chance to continue our dialogue on issues essential to the credit union industry and the financial services environment.”
The 2013 NAFCU Report on Credit Unions looks at four key areas: regulatory issues facing credit unions, credit unions’ use of Federal Reserve services, credit unions’ financial condition and economic benefits of credit unions to consumers.
NAFCU said some of the highlights in the 2013 report include:
- Nearly 72% of credit unions surveyed are planning to offer loans that fit into CFPB’s qualified mortgage standard, which takes effect Jan. 10.
- During the first half of 2013, federally insured credit unions’ (FICUs) year-over-year loan growth (5.5%) outpaced year-over-year share growth (4.7%) for the first time since 2008.
- A NAFCU-commissioned study found the total benefit to U.S. consumers from the presence of tax-exempt credit unions in financial markets is approximately $10 billion per year, with direct consumer benefits totaling $78 billion from 2005-2012.
- Credit union rates outperformed bank rates across the board. Average rates on deposits were 27% higher, and on car loans they were 25% lower than bank rates.
- The direct benefits to credit union members of these better loan and deposit rates were estimated to range from $4.3 to $8 billion annually from 2005-2012.
- Bank customers saved money too, due to competition from credit unions. A 50% reduction in the credit union market share would have cost bank customers almost $30 billion from 2005-2011.
- Credit union member business loans grew 77.7% since 2007, while bank lending to small businesses shrank 14.3%.
- Banks cut back on small business lending every year since 2008, and are still cutting back. Credit unions maintained a positive trend throughout the period.
The information compiled in the report is based on an annual survey of NAFCU members and NAFCU’s Economic & CU Monitor. NAFCU’s Economic & CU Monitor is prepared monthly based on financial data from NAFCU members as well as their input on other topics vital to the credit union community.
