Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

CU System
Filene Report: Why CUs Should Be Allowed to Accept Public Deposits
MADISON, Wis. (12/13/13)--Allowing credit unions to accept public deposits increases choice in the marketplace, provides greater competition, and in many cases, provides better convenience for trustees of the public's money, according to a new report from the Filene Research Institute.
 
"Credit Unions and the People's Money: Estimating the Benefits of Allowing Credit Unions to Accept Public Deposits," explains why credit unions should be allowed to accept public deposits. With many differences in state laws, the report takes a national look at the consequences.
 
Among the report's findings:
  • Credit unions routinely provide depositors and borrowers with substantially and sustainably more attractive interest rates than commercial banks.
  • If the fraction of total public deposits in credit unions increased from its current low level (0.4%) to the fraction of total domestic deposits in credit unions (10%) over a 10-year period, public entities would receive an additional $1.8 billion in interest. Borrowers in local communities would pay $2.3 billion less in interest.
  • There are many small communities in the U.S. that don't have commercial bank but but do have a credit union. For public entities in these communities, the ability to deposit funds in the local credit union is of significant value. Many communities are also low-income areas with economic challenges. Restricting credit unions from participating in the public deposit market puts the cost on those least able to afford it.
RSS





print
News Now LiveWire
.@LACULeague in @DailyComet: #creditunions' "old" benefits attractive to new generation http://t.co/AzOv3nB7IB
11 hours ago
At @FTC request, court halts operations of an alleged debt-relief scammer calling itself “FTC Credit Solutions.” http://t.co/qMsDBmKExH
16 hours ago
.@daytondailynews : The secret is out about #creditunions http://t.co/Aqu3pFTROV @DayAirCU @CODECreditUnion
16 hours ago
.@CUNA's @Nussle on @SenatorReid :(2of2)On behalf of more than 102M #CU members,I thank him 4 his leadership over the yrs/wish him the best.
18 hours ago
.@CUNA CEO Nussle on Sen. Reid’s decision not 2 seek re-election (1of2): Sen. Reid has a long history of #CU support throughout his career.
18 hours ago