NCUA reported that the number of problem credit unions, credit unions with a CAMEL code 4 and 5, fell by 9 from the previous month to 328 as of November 2009. In comparison, there were 271 problem credit unions at the end of 2008.
However, the amount of insured shares (deposits) in problem credit unions was $40.1 billion -- or 5.63 percent of the industry total insured shares -- more than double the amount of shares ($16.3 billion) in troubled credit unions at the end of 2008.
The following graph shows the distribution of problem credit unions by asset size.
Reprinted from Credit Union Times - December 18
ReplyDeleteNext year is looking even brighter for credit unions if the current trend of financial experts talking them up as an alternative to banks continues.
Yesterday CBS Early Show Financial Contributor Vera Gibbons touted how creditworthy consumers “stand a better chance of getting a personal loan at a credit union than you do at a commercial bank” since credit unions “are not as tangled up in the subprime mess as the banks were, so they’re in a better position to loan.” Gibbons also pointed out that the lower rates at credit unions can help consumers keep a few hundred dollars in their pockets annually.
In the January issue of O Magazine Financial Guru Suze Orman, in an article entitled “Your 2010 Financial To-Do List,” urges consumers to check out a credit union because “credit unions are often a better deal than banks and tend to pay higher yields on deposits.”
Next year is looking even brighter for credit unions if the current trend of financial experts talking them up as an alternative to banks continues.
http://online.wsj.com/article/SB126092583249292987.html
ReplyDelete