ALBANY, N.Y. (7/27/12)--New York credit unions' growth rates for assets, savings (shares), members and loans outperformed national averages in the first quarter of 2012 while business loans increased 14.6%.
Credit union assets in the state grew more than 4% to roughly $60.37 million. Savings held at New York credit unions also increased more than 4 % to more than $52.17 million, according to the Credit Union Association of New York (CUANY).
The membership growth rate during the past 12 months for New York credit unions was 2.9%, exceeding the industry average of 1.9%. In the first quarter, more than 56,000 credit union members were added, bringing total membership to a record 4.68 million, said CUANY.
Outstanding business loans at New York credit unions increased 14.6% from March 2011 levels, with credit unions originating $695 million in member business loans in the first three months of 2012. During the same time period, outstanding small business loans at New York banks decreased, according to statistics from Callahan & Associates.
"As the numbers show, New York's credit unions have been doing a great job of working with small businesses to get them the loans they need--especially at a time when the financial crisis of the past few years has resulted in a reduction of available business credit from traditional banking outlets," said William J. Mellin, CUANY president/CEO, Credit Union Association of New York. "Credit unions have proven to be a viable solution to help fill the lending gap--not to mention a less expensive one--for small businesses looking to secure the credit they need to build and grow."
Legislation is currently pending in Congress that would allow credit unions to increase their business lending, and in turn, adding an infusion of much-needed credit into the small business lending market. It's estimated that, if passed, this provision would make approximately $13 billion in capital available and create 140,000 jobs nationwide in the first year at no cost to taxpayers, according to statistics from the Credit Union National Association (CUNA) .
"While this legislation would stimulate the economy, banks--which control about 95% of the business lending market--have been fiercely fighting its passage," Mellin said. "I strongly believe that the time has come for Congress to pass this bill for the good of our country's economy."
CUNA and credit unions are urging Congress to increase credit unions' MBL cap to 27.5% of assets from 12.25%.