New Economic Video Reviews How Recent Developments May Affect Credit Unions
ALEXANDRIA, Va. (Dec. 23, 2015) – The strengthening economy is good for credit unions, according to National Credit Union Administration Chief Economist Ralph Monaco, but there is still uncertainty about the economic outlook and future path of interest rates.
Monaco discussed economic conditions and the possible impact of rising interest rates in NCUA’s latest Economic Update YouTube video, released today and available online here (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) .
“We’ve entered a new interest rate environment, where rising rates, both short- and long-term, are more likely,” Monaco said. “Now is a good time for credit unions to evaluate income and balance sheet changes across a range of potential interest rate scenarios, including one that looks like the Federal Reserve’s projection.”
Credit unions are benefiting from the rise in demand for big-ticket consumer goods, like autos and houses, Monaco said. Auto sales were well above the pre-recession average in the third quarter of 2015. Home sales remain at a relatively high level. Both are an important for credit union lending, accounting for almost 85 percent of the credit union system’s loan portfolio.
NCUA’s economic update video series is an ideal information resource for credit union board members, loan officers and management and is available on NCUA’s YouTube channel (opens new window)
(You will be leaving NCUA.gov and accessing a non-NCUA website.
We encourage you to read the NCUA's
exit link policies. (opens new page).)