NAFCU board meets with the Federal Reserve
WASHINGTON, DC (December 4, 2013) — The National Association of Federal Credit Unions (NAFCU) Board is meeting with the Federal Reserve today to discuss credit union issues and present the findings of its2013 NAFCU Report on Credit Unions. The meeting is being hosted by Federal Reserve Board Governor Jeremy Stein.
“Our 2013 NAFCU Report on Credit Unions shows that credit unions serve a vital role in our nation’s economy,” said NAFCU President and CEO Dan Berger. “This is the 21st year that the association is meeting with the Federal Reserve, and we appreciate the chance to continue our dialogue on issues essential to the credit union industry and the financial services environment.”
NAFCU Board members attending the meeting are Mike Parsons, NAFCU chair and president and CEO of First Source Federal Credit Union in New Hartford, N.Y.; Ed Templeton, NAFCU vice chair and president and CEO of SRP Federal Credit Union in North Augusta, S.C.; Rich Harris, NAFCU treasurer and president and CEO of Caltech Employees Federal Credit Union in La Canada, Calif.; Jeanne Kucey, NAFCU secretary and president and CEO of JetStream Federal Credit Union in Miami Lakes, Fla.; Cutler Dawson, president and CEO of Navy Federal Credit Union in Merrifield, Va.; Jan Roche, president and CEO of State Department Federal Credit Union in Alexandria, Va.; Debra Schwartz, president and CEO of Mission Federal Credit Union in San Diego, Calif.; Rod Taylor, president and CEO of Barksdale Federal Credit Union in Barksdale AFB, La., and Daniel Weickenand, CEO of Orion Federal Credit Union in Memphis, Tenn.
In addition to Berger, other key NAFCU staff attending the meeting include Anthony Demangone, executive vice president and COO, Carrie Hunt, senior vice president of government affairs and general counsel, and David Carrier, chief economist and director of research.
The 2013 NAFCU Report on Credit Unions looks at four key areas: regulatory issues facing credit unions, credit unions’ use of Federal Reserve services, credit unions’ financial condition and economic benefits of credit unions to consumers.
Some of the highlights in the 2013 report include:
- Nearly 72 percent of credit unions surveyed are planning to offer loans that fit into CFPB’s qualified mortgage standard, which takes effect Jan. 10.
- During the first half of 2013, federally insured credit unions’ (FICUs) year-over-year loan growth (5.5 percent) outpaced year-over-year share growth (4.7 percent) for the first time since 2008.
- A NAFCU-commissioned study shows that the total benefit to U.S. consumers from the presence of tax-exempt credit unions in financial markets is about $10 billion per year, with direct consumer benefits totaling $78 billion from 2005-2012.
- Credit union rates outperformed bank rates across the board. Average rates on deposits were 27 percent higher, and on car loans they were 25 percent lower than bank rates.
- The direct benefits to credit union members of these better loan and deposit rates were estimated to range from $4.3 to $8 billion annually from 2005-2012.
- Bank customers saved money too, due to competition from credit unions. A 50 percent reduction in the credit union market share would have cost bank customers almost $30 billion from 2005-2011.
- Credit union member business loans grew 77.7 percent since 2007, while bank lending to small businesses shrank 14.3 percent.
- Banks cut back on small business lending every year since 2008, and are still cutting back. Credit unions maintained a positive trend throughout the period.
The information compiled in the report is based on an annual survey of NAFCU members and NAFCU’s Economic & CU Monitor. NAFCU’s Economic & CU Monitor is prepared monthly based on financial data from NAFCU members as well as their input on other topics vital to credit unions. The2013 NAFCU Report on Credit Unions is available at www.nafcu.org/research/reportoncreditunions.
The National Association of Federal Credit Unions is the only national organization that focuses exclusively on federal issues affecting credit unions, representing its members before the federal government and the public.