Credit union lending is expected to increase 5.5% in 2013 and 6.5% in 2014, according to CUNA economists.
Credit unions finally reported rising loan balances after three years of negligible or negative growth dropped average loan-to-share ratios to 68.6% as of year-end 2012—one of the lowest levels in 20 years. But lending is expected to pick up as the economy improves, consumer confidence rebounds, and household deleveraging declines.
Credit unions can expect growth in auto loans, credit cards, and purchase mortgage loans due to pent-up demand created by the recession.
A 3% to 5% increase in home prices during the next year should increase demand for second mortgages and home equity loans.
CUNA President/CEO Jim Nussle said Thursday that the field-of-membership rule changes proposed by the National Credit Union Administration at its open board meeting will provide greater choice for consumers, as well as flexibility for credit unions to better serve their communities.
Human trafficking, money laundering, trade-based money laundering and terrorist financing all come with their own sets of red flags for financial institutions. In addition, entities such as money services businesses and cash-intensive businesses can be legitimate, but also have potential to be used for illicit activities.