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

Washington
NCUAs Myers outlines CU benefits in iMarketWatchi
WASHINGTON (4/11/12)--Bill Myers, director of the National Credit Union Administration's (NCUA) Office of Small Credit Union Initiatives, discussed credit unions' benefits to consumers, and more complex issues facing small credit unions in a recent MarketWatch interview.

In a question-and-answer format, Myers said "the cool thing about most credit unions" is their service to small communities, including churches and employees of certain businesses that need tailored financial service offerings. "Depending on what little niche you fit into, there's a credit union for you," he said.

The NCUA official highlighted the fact that credit unions serve individual communities, and as such, "did not get caught up in some of the complex financial practices of the recent bank bust."

Most credit unions don't have the complex financial products a bank has to offer; that is a strength in terms of safety, even if they don't earn as much income as a result, he said.

When asked if lower income levels were a concern, Myers responded, "Well, first, credit unions are member-owned, and don't have to produce profits or please anxious shareholders. But second, and more to the point, not having complex products does hurt the funding, and also causes some customers to drift away. 

"It's especially hard on small credit unions, which are closing or merging at a significant pace: in 1979 there were 22,000, and now there are 7,100 credit unions in the U.S."

However, Myers also noted during the interview that many credit unions are finding their membership increasing as new members that do not trust big banks move to the safety of credit unions.
Other Resources

RSS





print
News Now LiveWire
What role are #creditunions playing in @gatesfoundation's 2030 vision of financial services? Read #NewsNow Monday
11 hours ago
Consumers fear inaccurate info lingers on credit reports, says @FTC study Read @CUNA's News Now: http://t.co/RzNLMnaROO
13 hours ago
@PCUA has formed a @LinkedIn networking group for former bankers turned #creditunion employees.
13 hours ago
.@politico reports Democrats haven't picked the city yet, but their 2016 convention will be held the week of July 25.
13 hours ago
.@cuna, @DCUC_HQ urge @CFPB to exempt #CUs from changes to Military Lending Act rules cuz CUs aren't part of the targeted problem. NN Monday
15 hours ago