Savings Drain Out Of CUs
MADISON, Wis. - (10/05/04) -- In what may be a signal of things tocome, an estimated $6.3 billion of savings flowed out of creditunions in August, according to CUNA. CUNA economists were trying todiscern whether the outflow--one of the largest ever--were symbolicof a longer trend or just a temporary blip. Bill Hampel, chiefeconomist for CUNA, noted there was a large outflow of savings lastAugust as part of the traditional slowdown in savings growth, andthis August had just four paydays (Fridays), compared to five inJuly, an anomaly that pumps up savings balances. Through the firsteight months of the year savings growth was only 4.2%, less thanhalf the 9% growth for the same period last year, indicating themassive inflow of funds into credit unions has peaked, said Hampel.On the other hand, loan growth was strong in August, at 1.3%,bringing year-to-date growth to 8%, up from 6% for the same periodlast year. August saw strong growth in home equity loans (3%),credit card loans (2.9%), adjustable-rate mortgages (1.7), new carloans (1.6%) and unsecured personal loans (1.4%).