On Deadline: Deposits Continue To Flow Out Of CUs
Members drained another $5.6 billion from their credit union accounts in May, one of the worst months ever for credit union growth, CUNA reported last week. Since the end of March $8.5 billion of savings have flowed out of credit unions, as slow to negative growth is causing increasing concern for the movement.
Through the first five months of 2005 savings have grown a meager 1.7%, the slowest five months on record, according to the trade group.
Lending has also slowed to a five-year low, with loans expanding by just 2.8% from the start of the year, down from 3.8% for the same period last year. Loans grew by 1% in May but all of the most important loan categories showed declines. In May, both ARM and fixed-rate mortgages declined by 1.4%, new car loans by 0.8%, and used car loans by 0.3%.