|2008 will be a slow-growth year for credit union loans|
MADISON, Wis. (2/6/07)--With credit union loan growth outpacing savings growth, the loan-to-savings ratio increased to 84.6% in December from 83.9% in November, according to the Credit Union National Association's (CUNA) monthly sample of credit unions for December 2007.
This is the highest year-end reading since the 1970s, suggesting that for some credit unions, liquidity is very tight, Mike Schenk, CUNA senior economist, told News Now.
The liquidity ratio--the ratio of surplus funds maturing in less than one year to borrowing, plus other liabilities--remained at 18% during December. However, the widely reported problems in the housing market--combined with general weakening of economic conditions--suggests that 2008 will be a slow-growth year for credit union loans, Schenk added. (CUNA News Now)