Growth in outstanding loans slows in UA in November | 2021-01-21
Outstanding loans to credit unions rose 0.05% in November, compared to an increase of 0.11% in October and an increase of 1.54% in November 2019, according to CUNA. Monthly estimates from credit unions.
“November is often a strong month for credit union loan growth as members increase spending during the holiday season,” said Jordan van Rijn, senior economist at CUNA. “However, this year has been different as the pandemic has reduced travel and spending, and many consumers have used their savings instead of credit for their vacation purchases.”
Other mortgages led loan growth for the month, increasing 0.92%, followed by fixed rate mortgages (0.88%) and credit card loans (0.85%). On the decline during the month were used car loans (-0.04%), new car loans (-0.17%), adjustable rate mortgage loans (-0.84%), personal loans without guarantee (-0.91%) and mortgage loans (- 2.09%).
Credit union savings balances rose 0.20% in November, compared to an increase of 1.83% in October and an increase of 1.54% in November 2019. Money market accounts led the growth savings during the month, increasing by 1.96%, followed by the regular share (0.65%). Down in November, certificates of deposit (CD) (-0.31%), individual retirement accounts (-1.59%) and stock drafts (-1.90%).
“The reduction in savings is not too surprising,” says van Rijn. “The recession and the government’s stimulus measures have led many people to increase their savings, but it is only natural for them to use these deposits during the holiday season. Nonetheless, we expect credit union savings growth to pick up again in December and January as the next round of stimulus payments arrive. “
Credit union delinquency over 60 days rose to 0.60% in November.
The loan / savings ratio fell slightly from 75.0% in October to 74.9% in November. The liquidity ratio (the ratio of funds in excess of less than one year to borrowings and other liabilities) fell from 20.5% in October to 20.0% in November.
The total membership of credit unions rose 0.15% in November to 126.4 million.
The movement’s overall capital / asset ratio remained at 10.4% in November. The total amount of dollar capital increased 0.87% to $ 193.0 billion.