Credit unions have increased their share of the market for nonmortgage consumer lending in 2013 amid declines in banks’ and financial companies’ shares.
In the nonmortgage consumer credit market, credit unions expanded lending by 1.6 percent in the first quarter of 2013. Banks and financial companies saw contractions of 2.2 percent and 1.2 percent, respectively.
NAFCU Staff Economist Curt Long analyzed data published by the Federal Reserve in a Macro Data Flash, finding that consumer credit growth in April was largely driven by non-revolving credit. “Non-revolving credit increased again in April as consumers took advantage of low interest rates to purchase vehicles and as young adults pursued higher education in a weak labor market,” Long wrote.
Long said revolving credit increased only slightly in April as consumers worked to avoid adding to their credit card debt.continue reading »