MADISON, Wis.-Can a credit union have too much of a buffer?
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Mike Schenk, CUNA VP of economics and statistics, feels that having strong capital today creates a "necessary buffer. I think more credit unions are discovering how fast capital can go away, almost shockingly fast. But we have an unprecedented opportunity to help consumers and gain long-term members. A reasonable buffer is good thing. But clearly, for many credit unions, 11%, 12%, 15% capital is too much and now is the perfect time to use it because people really need us."
