Loan Growth Falls To Historic Lows
Credit Union Journal Daily Briefing | Wednesday, September 8, 2010
WASHINGTON – Credit union lending has all but dried up, even with interest rates plunging to new lows, leaving new challenges for credit unions to attract borrowers.
Monthly data complied by CUNA from almost 500 credit unions showed total credit union loans declined by 0.1% during July, and have declined by almost 1% for the first seven months of the year.
That’s the first time in almost 30 years credit unions have had negative loan growth through the first seven months of a year, according to Bill Hampel, chief economist for CUNA, who predicted the weakest year for loan growth since World War Two. “That’s why this recovery is so weak,” said Hampel.