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.
President Barack Obama sent greetings Thursday to those celebrating International Credit Union Day. CUNA worked closely with the White House on the statement, and a number of credit union-friendly legislators also weighed in with the White House.
CUNA’s Strategic Communications Department teamed up with The Wall Street Journal this week on an infographic illustrating the differences between credit unions and banks. The graphic ran in print today, on International Credit Union Day.
The NCUA’s Tuesday announcement that it will repay the U.S. Treasury in full is a good sign for credit unions, said CUNA Chief Policy Officer Bill Hampel. The agency will repay the $1 billion outstanding balance before Oct. 31.