Credit unions are increasing loans faster than savings
Third quarter results released this week showed credit unions continued to increase their loans faster than savings, signaling tighter cash and creating loan-to-savings ratios not seen since the last recession.
Steven Rick, CUNA Mutual Group’s chief economist, said the trend will continue next year, and could portend at least a slowing of growth by the end of 2019. Mike Schenk, vice president of economics and statistics at CUNA, said the trends appear to be driven by big credit unions deploying assets more efficiently. He sees no sign of a recession.
CUNA Mutual Group’s Credit Union Trends Report released this week showed credit unions’ loan-to-savings ratio reached 82.1% in September, and predicted it will reach 82.4% by December, the highest ratio since the beginning of the Great Recession in December 2007. Read more at CU Times.