Thursday, November 17, 2011

Problem Credit Union Update

The NCUA reported today that the number of problem credit unions increased during October, while assets and shares in problem credit unions were unchanged.

The number of problem credit union increased by 10 during October to 394 – the largest number of problem credit unions during the current credit cycle.

The growth in problem credit unions was associated with credit unions with less then $100 million in assets. Five credit unions with less than $10 million and 6 credit unions with between $10 million and $100 million in assets were added to the problem list during October. On the other hand, there was on fewer credit union with between $100 billion and $500 million in assets on the problem list by the end of October.

However, shares (deposits) and assets at problem credit unions were unchanged at $30.4 billion and $33.9 billion, respectively. NCUA noted that 3.89 percent of all insured shares and 3.4 percent of the industry’s assets are in problem credit unions.

A problem credit union has a CAMEL rating of 4 or 5.

No comments:

Post a Comment

Post a Comment

 

The content is provided for educational purposes only, with the understanding that neither the authors, contributors, nor the publishers of this site are engaged in rendering legal, accounting or other expert or professional services. If legal or other expert assistance is required, the services of a competent professional should be sought.

Comments appearing in response to articles appearing on this site do not necessarily reflect the views of the ABA. ABA makes no representations regarding the truth or accuracy of commentary or opinions that may be posted in response to the articles that appear on this website.

The inclusion herein of any link to a website, either in the text of an article or in a comment, does not denote any approval, sponsorship, or endorsement by the ABA, and ABA is not responsible for the content or opinions expressed on those linked websites or related commentary. This content is not licensed to third parties sites and is not affiliated with any third party site. Any reference to the author or this content on any third party site on the Internet is not authorized by the ABA.

It is the policy of the American Bankers Association to comply fully with all antitrust laws. Certain discussions should be considered off-limits, including those that contain competitively sensitive data such as price and cost information, or statements that could be construed as reflecting an attempt or desire to control or influence a particular market or markets. Future pricing or other prospective competitive information should never be shared.