Prediction: Number of CUs to Shrink to6,000 By 2010

CHICAGO - (08/26/05) The number of credit unions in theUnited States will shrink to approximately 6,000 by the year 2010,according to former NCUA Chairman Dennis Dollar. Dollar saiddriving the ongoing consolidation will be voluntary mergers ascredit unions seek additional economies of scale. Dollar, who nowconsults through his firm Dollar & Associates, Birmingham,Ala., predicted those mergers will not just be among the smallestcredit unions, noting, “No matter how we may view a bigcredit union, the assets of every credit union in America doth nota Citibank make.” In fact, Dollar said perceptions that smallcredit unions are disappearing are inaccurate. “I do thinkthe demise of the small credit union is vastly overstated.”He pointed to figures showing that of the 9,208 CUs at year-end2004, 5,691 (61%) have assets of $20 million or less. Dollar was inChicago for NASCUS’ annual conference.