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.

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