Newsroom
ECU Monitor explores impact of interchange
NAFCU's new Economic & CU Monitor – now available for download – takes a look at the impact of interchange on credit unions.
A decade after the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Durbin Amendment has had an unequivocally negative impact on credit unions’ non-interest income. Moreover, in April 2021, North Dakota retailers filed a lawsuit against the Federal Reserve challenging its interchange rule. Soon after, the Federal Reserve reopened Regulation II to propose new limits on routing practices.
In this month’s survey, credit unions were asked what share of their non-interest income was derived from debit interchange and how interchange income had changed since the Durbin Amendment took effect.
Roughly half of respondents reported a decline in interchange income per transaction, a finding which comports with prior NAFCU surveys. Notably, this negative impact has not been limited to covered issuers, who are defined as those with total assets of $10 billion or more. Exempt issuers have also experienced a decline in per-transaction interchange rates. The survey notes that credit unions rely on interchange revenue to support card programs that are safe and affordable for their members.
NAFCU will continue to vigorously call for a repeal of the Durbin Amendment’s harmful debit price caps and oppose attempts by retailers to relitigate the routing and pricing provisions of Regulation II will ultimately harm credit union members-owners.
Also included in the latest Economic & CU Monitor are results from the Credit Union Sentiment Index (CUSI), an index based on NAFCU member responses to eight questions on growth and earnings outlook, lending conditions and regulatory burden.
The CUSI rose slightly in May, thanks to an improved outlook on growth. Of note, respondents’ measured loan demand at its lowest point in a year and is a growing concern in credit unions’ earnings outlook.
NAFCU relies on survey responses to provide its members a glimpse of trends affecting the credit union industry as a whole and inform its advocacy efforts. Next month's survey is focused on tax reporting and Bank Secrecy Act (BSA) responses are due July 14.
For more on NAFCU's award-winning research team, check out the association's Macro Data Flash reports for insights into interest rates, auto sales, home market and more.
Share This
Related Resources
Add to Calendar 2024-05-03 14:00:00 2024-05-03 14:00:00 Plan Sponsor Attitudes Toward Retirement Plan Management and Fiduciary Outsourcing About the Webinar In January 2024, Pentegra conducted a survey of retirement plan sponsors and their perspectives on retirement plan management and fiduciary outsourcing. The survey measured how sponsors are using fiduciary outsourcing to help better manage their retirement plans. It also captured their perspectives on what outsourcing does to help them better position their plans and drive improved retirement plan outcomes. Key Takeaways: What is the full scope of your responsibilities as a plan sponsor? What is fiduciary outsourcing and how does it work? How does fiduciary outsourcing help reduce workloads and minimize risk? How can a credit union best position its plan to drive improved outcomes? Register Here Web NAFCU digital@nafcu.org America/New_York public
Plan Sponsor Attitudes Toward Retirement Plan Management and Fiduciary Outsourcing
preferred partner
Pentegra
Webinar
Ensuring Safety and Soundness with AI
Management, Consumer Lending, FinTech
preferred partner
Upstart
Blog Post
Turning Lemons into Lemonade: Capitalizing in a Post-Banking Crisis Era
Strategy
preferred partner
Allied Solutions
Blog Post
Add to Calendar 2024-05-02 14:00:00 2024-05-02 14:00:00 Mastering Resilience in Incident Response Plans About the Webinar An Incident Response (IR) plan is crucial for guiding credit unions through major incidents efficiently and effectively. However, many IR plans lack resilience, making them less adaptable to the evolving threat landscape. Join us for our webinar Mastering Resilience in Incident Response Plans where DefenseStorm cyber experts Elizabeth Houser and James Bruhl will delve into the importance of resiliency within cybersecurity IR plans. Don’t miss out on the opportunity to learn how to: Ensure IR plan accessibility so that all team members with assigned roles are prepared for effective incident response. Conduct efficient and regular reviews to ensure roles and responsibilities are current, tools are relevant, and compliance requirements are met. Implement and utilize tabletops to regularly test the effectiveness of your IR plan. Enhance preparedness, efficiency, and confidence among responders. View On-Demand Web NAFCU digital@nafcu.org America/New_York public
Mastering Resilience in Incident Response Plans
preferred partner
DefenseStorm
Webinar
Get daily updates.
Subscribe to NAFCU today.