Newsroom

FOR IMMEDIATE RELEASE
December 1, 2011

WASHINGTON – The National Association of Federal Credit Unions (NAFCU) Board met with the Federal Reserve today to discuss credit union issues and present the findings of its NAFCU2011 Report on Credit Unions. The meeting was hosted by Federal Reserve Governor Sarah Bloom Raskin.

"For 19 years, the Federal Reserve has welcomed NAFCU's board of directors to discuss topics of joint interest. As our policymakers continue to find ways to help our nation's economy recover, we are particularly grateful for the opportunity to meet with Governor Raskin and other senior Federal Reserve officials to underscore the key role credit unions play in this regard," said NAFCU President and CEO Fred R. Becker, Jr.

The NAFCU 2011 Report on Credit Unions looks at four key areas: financial condition, regulations, service to members and use of Federal Reserve services, and service to low- and moderate-income people.

Some of the highlights in the 2011 report include:

• During the first half of 2011, federally insured credit unions' (FICUs) total annualized share growth (6.6 percent) outpaced total annualized loan growth (-0.3 percent). The loan-to-share ratio decreased from 71.8 percent at year-end 2010 to 69.4 percent as of June 2011.
  
• FICUs' return on average assets (ROA) improved to an annualized 0.77 percent during the first half of 2011. Asset growth increased by 6.2 percent and net income surged by 26.1 percent.
  
• The Dodd-Frank Wall Street Reform and Consumer Protection Act and other regulatory changes implemented since the beginning of the financial crisis are generally aimed at abusive practices and exotic financial products. Nonetheless, the changes impact virtually all financial institutions and have significantly increased the cost of compliance for credit unions.
  
• The Federal Reserve Board's debit interchange fee price cap is likely to have a trickle-down effect on all debit card issuers, regardless of size.
  
• The majority of credit unions offer automated teller machines, internet banking, and audio response systems.
  
• According to the 2010 Home Mortgage Disclosure Act data, credit unions have a higher approval rate for all mortgage loans than other depository institutions.

The information compiled in the report is based on an annual survey of NAFCU members and NAFCU's Economic & CU Issues Monitor. NAFCU's Economic & CU Issues Monitor is prepared monthly based on financial data from NAFCU members as well as their input on other topics vital to credit unions. The NAFCU 2011 Report on Credit Unions is available at www.nafcu.org/2011ReportOnCreditUnions.

NAFCU is the only national organization that focuses exclusively on federal issues affecting credit unions, representing its members before the federal government and the public.

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Contact:Patty Briotta|703-842-2820|pbriotta@nafcu.org