Recent Credit Union Journal articles reporting negative earnings for some credit unions in California are missing an important perspective. California credit unions, with more than 11% capital, are well positioned to manage the effects of the current economic downturn, and the amount of losses reported represent only a small percentage of total assets for most credit unions.
Meanwhile, as many other financial institutions have chosen to tighten their lending standards and trim their product offerings, credit unions are continuing to provide their members a variety of products to help them cope with the financial struggles they may face going forward. Additionally, although California is among the states hardest hit by the housing slump, our member credit unions have demonstrated continued growth in assets, loans, and membership.
No one can predict how long the slowing economy and sluggish housing market will last, and consumers in California and nationwide will likely endure financial difficulties for some time. Still, our outlook remains positive as credit unions are not only committed to helping their members face economic challenges, they have ample resources and ability to do so.
Bill Cheney, President/CEO
California/Nevada CU Leagues, Rancho Cucamonga, Calif.
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