CU Members Twice As Loyal As Bank Customers
WESTBROOK, Maine-The uncertainty and challenges that have occurred in the financial services industry in the past year have resulted in more Maine consumers rating credit unions as better than other financial institutions in rates, service and products, as well as being nearly twice as likely to recommend using a credit union than other financial institutions.
According to a new study conducted by Market Decisions, Portland, Maine, members of Maine credit unions are significantly more satisfied than customers of other financial institutions.
Some of the report's other notable findings of consumer perceptions were: credit unions were more often seen as better on interest rates paid (49%) than banks (25%); credit unions (58%) were more often seen as better on interest rates charged by an even wider over banks (20%); credit unions (35%) were more often seen as better at friendly service than banks (18%); and credit unions (36%) were more often seen as better at giving back to the community than banks (28%). Credit unions also made impressive gains in accessibility, technology and convenience.
Commercial Mortgage Defaults Looming Large
HACKETTSTOWN, N.J.-Commercial mortgage defaults will be highly elevated in 2010 and could wipe out profits at a number of U.S. banks, but it does not appear this problem will morph into a true crisis that would endanger U.S. or global financial systems.
These are the key conclusions of a research study published by SMR Research Corp. It is entitled, "The Commercial Mortgage Dilemma: Banking's Next Credit Challenge."
"The saving grace for the financial system is that most really large U.S. banks are modestly exposed," said SMR President Stuart A. Feldstein.
The same cannot be said for some medium-sized and smaller banks. At banks with less than $1 billion, commercial mortgages recently were 32.5% of total assets-a level of dependence six-fold higher than at big banks with $50 billion or more of assets. Many of these institutions will be hard-pressed to make any money in 2010, SMR said. Some could become insolvent.
For info: www.smrresearch.com
