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
CUNA letter in WSJ: CU assets well managed, pose no undue risk
WASHINGTON (6/23/14)--In a Letter to the Editor of the Wall Street Journal, published Saturday, the Credit Union National Association defended credit unions strong record of managing interest rate risk.
 
Interim President/CEO Bill Hampel underscored that credit unions have always taken a conservative stance in their stewardship of member assets in managing interest-rate and credit risk. The letter was penned in response to a June 6 Journal article focusing in interest-rate risk at credit unions, and included comments by National Credit Union Administration Chair Debbie Matz.
 
Hampel reminded, "Credit unions' exposure to long-term assets is well-managed and poses no undue risk to the federal insurance fund protecting credit union members' savings. Further, the lending of these consumer-owned financial institutions remains prudent. Although long-term assets stand at 35% of total assets, they are dwarfed by the 51% of total funds from long-term sources: net worth and core deposits."
 
That mix, Hampel explained, means that when interest rates do rise, credit unions' interest costs will increase by much less. The CUNA leader also reiterated that credit unions' moderate approach to credit standards is borne out by their loss record.

"(C)redit-union loan losses were less than half those at for-profit banking institutions throughout the recession and have since returned to very low prerecession levels," Hampel said.

The National Association of Federal Credit Unions also submitted a letter, which is printed.

Use the resouce link below.
RSS





print
News Now LiveWire
CUNA: CUNA offices closed through Friday, News Now returns Monday http://t.co/a5xbLzQKDj
23 hours ago
Reminder: @CUNA's Madison, D.C. offices will be closed through Friday, open again on Monday. #NewsNow will publish Monday.
1 Day ago
MI dentist to match @CUDirect's $20K to @HurleyMedical as a result of #20for20 online voting http://t.co/hqmIc9LpK1 @CMNHospitals
1 Day ago
New #creditunion chartered in St. Louis - #LutheranFCU - by @TheNCUA http://t.co/faPfANGS0P. Only 3rd new FCU charter this year.
1 Day ago
Don't get hacked during the holidays-use these tips from @CUNA http://t.co/jEqxni6NhO #StoptheDataBreaches http://t.co/woIxPOIyys
1 Day ago