Press

July NCUA Economic Update Now Available

Latest Video Focuses on Improving Economy, Changing Yield Curve

ALEXANDRIA, VA (July 29, 2013) — The National Credit Union Administration released today its latest “YouTube” economic update video. The free video is available at: https://www.youtube.com/user/NCUAchannel.

In the July update, NCUA Chief Economist John Worth discusses the latest economic data and provides his views on how the evolving interest-rate environment and changes in the yield curve may affect the financial performance of credit unions in the future. He also notes the interest-rate environment has shifted. Worth indicated that this steepening of the yield curve can support credit union profitability, but also has resulted in a sharp drop in refinancing activity.

“We have entered a period where increases in rates will be concentrated in long rates such as the 10-year Treasury, while short rates are likely to remain around their current levels,” Worth said.

The next phase of rate adjustment will likely result in a rising in short-term rates and a flattening of the yield curve. This second phase is likely to be a challenging period for credit unions, according to Worth.

NCUA’s economic update video series is an ideal resource for credit union board members, loan officers and management and is available on NUCA’s official YouTube Channel at no charge.

NCUA is the independent federal agency created by the U.S. Congress to regulate, charter and supervise federal credit unions. With the backing of the full faith and credit of the U.S. Government, NCUA operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of more than 94 million account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions.

–NCUA–

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