Magazine article Economic Trends

Credit Unions

Magazine article Economic Trends

Credit Unions

Article excerpt

Credit unions are mutually organized depository institutions that provide financial services to their members. Like banks and savings associations, credit unions appear to be consolidating. Their numbers fell steadily from 11,687 institutions in 1995 to 9,014 at the end of 2004. However, their total assets more than doubled over the same period from $306.6 billion to $647.0 billion. The number of credit union members also increased steadily from 67.1 million in 1995 to 83.6 million at the end of 2004.

Growth in credit union assets has been fueled by positive loan growth. From the end of 1995 to the end of 2004, loans increased from $192.1 billion to $414.3 billion; loans as a share of assets grew modestly over that period, rising from 62.7% to 64.0%. Year-over-year loan growth has varied from 5.8% to 11.3% over the past 10 years, with an average annual growth rate of 7.8%.

Federally insured credit union shares have also risen steadily since 1995. Shares, which are analogous to deposits in banks and savings associations, are the primary source of funds for credit unions, accounting for roughly 86% of total sources of funds. Like growth in loans, annual share growth has fluctuated between 5.0% and 15.3% over the past 10 years. Overall, shares grew at a robust 10.6% annual rate during this period. Credit unions continued to accumulate capital, which rose from $31.6 billion at the end of 1995 to $70.6 billion at the end of 2004, an increase of more than 123%. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.