Credit unions one-up banks in lending in the latest report by the NCUA.
The nation’s once-sluggish financial platform seems to be gaining traction as credit unions continue to increase lending and memberships. According to data released by the National Credit Union Administration (NCUA), credit unions experienced a 9.8% loan growth during the second quarter of 2014, double the amount for banks during the same period.
The increase in lending, accounting for the highest gains over a year since the first quarter of 2006, seems to correlate with credit unions topping 100 million members in June. As banks struggle with new competitors like peer-to-peer lenders and companies focusing on specialized mortgages and technology, credit unions continue to strive in the financial world.
“We don’t see our new members coming from other credit unions, we see them coming from large banks,” said chief executive of Navy Federal Credit Union Cutler Dawson. NFCU is the country’s biggest credit union in terms of assets.
Together, the nation’s 6,500 credit unions are progressively growing in various areas beyond consumer lending and deposits. Business lending, commercial real-estate loans, financing vacation ownership, trust services and even pet insurance are enjoying steady increases according to the American Bankers Association’s senior economist, Keith Leggett.
Some regulators believe non-profit financial institutions are taking on greater interest-rate risks by increasing lending. Still, credit unions are not derailed by such concerns as more consumers turn to them.
Lending Power You Can Count On
As far as financial institutions go, credit unions generally offer better interest rates than banks, and the latest data sets prove this. Valley Federal Credit Union offers competitive rates for all members, a benefit you can take advantage of today. Become a member of VFCU to learn why so many people are switching to the financial support provided by credit unions.
For more information on how you can become a member of VFCU, visit any of our locations or contact our main office in Brownsville at (956) 546-3108.