Consumer credit rises due to revolving credit boost
A NAFCU Macro Data Flash report highlights new data from the Federal Reserve showing total consumer credit rose at a seasonally-adjusted, annualized rate of 6.3 percent in December and is up 4.5 percent from a year ago.
"Consumer credit growth sped up in December, fueled by strong growth in the revolving credit sector that made up for November’s losses," NAFCU Chief Economist and Vice President of Research Curt Long said.
Revolving credit, which is primarily credit cards, rose 14 percent during the month, up 4.2 percent compared to this time last year. Non-revolving credit, which is primarily auto and education loans, grew 3.7 percent.
“In the latest Fed Senior Loan Officer Survey, 18.2 percent of banks tightened standards for credit card borrowers,” Long added. “NAFCU expects supply constraints to weigh on consumer credit growth in 2020, although those effects are mitigated by the strong labor market.”
Total consumer credit for credit unions rose 0.1 percent in December from the previous month, compared to a 2 percent increase for banks and a 0.1 percent increase for financial companies. From a year prior, total consumer credit at credit unions increased 2.8 percent while banks and financial companies saw increases of 5.7 percent and 0.5 percent, respectively.
Credit unions now own 11.5 percent of the market, down slightly from the previous month. Meanwhile, financial companies' market share declined to 12.8 percent, while banks' share rose slightly to 41.9 percent.
Add to Calendar 2022-09-29 14:00:00 2022-09-29 14:00:00 Coming Soon: CECL This is a deep-dive refresher into the requirements of the Current Expected Credit Losses (CECL) standard. ASC 326 (CECL) is the most significant accounting standard to impact credit unions in many years. Your credit union should be prepared to adopt CECL in 2023 – this will be an effort to make sure you have a sound calculation, appropriate accounting policies and sufficient disclosures. In this Coming Soon: CECL webinar, you’ll get a baseline understanding of the accounting decisions required by the standard, with a focus on those that have tripped up earlier adopters; lessons learned from previous adopters; best practices and key items to consider for your model on a go-forward basis. Key Takeaways Understand requirements of the CECL standard Analyze lessons learned and best practices from previous adopters Evaluate key items to consider for future maintenance of the CECL model(s) Register Now$295 Members | $395 Nonmembers(Additional $50 for USB)One registration gives your entire team access to the live webinar and on-demand recording until September 29, 2023.Go to the Online Training Center to access the webinar after purchase » Who Should Attend Presidents and CEOs CFOs Accounting titles NCRMs Risk titles Education Credits NCRMs will receive 1.0 CEUs for participating in this webinar CPA credit information is below; recommended 1.0 CPE credits. CPA Certification Credit Information Reviewer: Josie Collins, Senior Associate Director of Education, NAFCU Learning Objectives: See key takeaways Program Level: Basic Prerequisites Needed: None Advance Preparation Needed: None Delivery Method: Group Internet-Based Recommended CPE Credits: 1.0 credits Recommended Field of Study: Accounting – Technical About Our Webinars Our webinars are streamed live from NAFCU headquarters near Washington, DC. Your audio/video feed of the presenters includes presentation slides and downloadable handouts. You can easily submit your questions to the presenters at any time during the live broadcast, with no dialing over the phone! The audio and video stream directly through your computer. Web NAFCU firstname.lastname@example.org America/New_York public
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