Thursday, January 21, 2010

Humble Pie

In a recent letter to Congress, ABA wrote that National Credit Union Association statistics show that the number of credit unions with business loan programs have fallen 14.3 percent between December 2008 and September 2009.

Bill Hampel, Credit Union National Association chief economist, told BNA that the statistics on the drop in credit unions making business loans were “absolutely wrong.”

Are you ready to eat humble pie?

Below is the schedule from NCUA on Miscellaneous Information, Programs and Services at all federally-insured credit unions. (Click to Enlarge).

As the schedule shows, the number of credit unions offering business loans fell from 1,954 as of December 2008 to 1,674 as of September 2009.


  1. The number of credit unions making business loans declined about 9%. The table you show is CUs offering business loans, not whether or not they are actually making them; notice the difference. Further, this decline represents YTD MBL originations, which of course would be lower in 3Q compared to year-end. A more meaningful comparison will be available once 4Q09 data is available.

    Further, he is correct in that your statistics are wrong. However, I understand why the ABA is grasping a what few statistics is can pull together to trash credit union business lending. Perhaps if you would like Bill to have a slice of humble pie, you could cut him a slice of yours.

  2. Compared to 3Q08, the number of credit unions that had originated at least one busienss loan YTD is down 1%. This is compared to the 3.4% decline in the total number of credit unions during the same period.

    I'm not as familiar with the FDIC's QBP. Dr. Leggett, could you provide us with statistics on the change in number of banks making business loans? I'm going to guess that its down more than 1%, but I don't know for certain.



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