WSJ: CUs Have Outgrown Down-Home Reputation

An article in the Wall Street Journal says that credit unions have outgrown their down-home reputation.

The article notes that large credit unions "are using their newfound financial heft to compete aggressively for business."

The article points out that following the financial crisis, credit union regulators took a more hands-off approach compared to other federal banking regulators. The best example of this hands-off approach is the continued delay of the National Credit Union Administration's risk-based capital requirement for credit unions with at least $500 million in assets.

The article states that the National Credit Union Administration does not see large concentrations in high-risk activities at the nation's credit unions, but analysts are uneasy how these large credit unions might fare in a recession.

Read the article (subscription required).