Credit Unions are Recovering from Recession
Credit Unions are Recovering from Recession
Credit unions provide the majority of the same consumer services as banks, however at a little lesser cost. Credit unions in Arizona and nationwide are gaining profits once again and are trying to fix the bad loans that accumulated during the recession. Moreover, they are enticing new members or costumers, as well as those that are dissatisfied with big banks.
On a national scale, profits of credit unions during the first quarter reach $2.1 billion, which is almost 25 percent more than that of last year. Moreover, 667,000 new members signed up during the months of January to March. In addition to the 1.4 million in the previous year, credit unions currently aid 92.5 million Americans.
According to Debbie Matz, chair of the National Credit Union Association (NCUA), the credit unions’ overall assets reached $1 trillion, and for the first time, the net worth of the credit industry topped $100 billion during the latter part of March.
The majority of the credit unions in Arizona are gaining profits once again after a difficult situation during 2009 and 2010. A few of the bigger institutions’ profits for the first quarter increased approximately twice or more than what they earned last year.
The NCUA added the credit unions in Arizona headed the nation during quarter one in return on average assets, which is a major profitability measure.
On the other hand, banks are also improving in terms of their finances and are still surpassing credit unions. Based on a report from Federal Deposit Insurance Corp, during the first quarter, banks nationwide earned $35.3 billion, which is an increase of more or less 23 percent. The assets of the banking industry reached $13.9 trillion.
Since credit unions are owned by its members and are not-for-profit, they can charge loans at slightly lower interest rates than that of banks. Also, credit unions do not pay income taxes, which is unfair according to bankers. However, senior vice president of Arizona State Credit Union in Phoenix, Paul Stull, believes that the increase in credit union members is caused by the drive to support local firms.
Related posts on loans for people with bad credit:
- Credit Unions Cry for a Higher Ceiling Credit Unions Cry for a Higher Ceiling According to the Federal Deposit Insurance Corp, by the end of last year there exist 7,240 credit unions and 7,357 banks in the United States. These credit unions have $974 billion worth of assets…...
- Hope Sparks for AEA Hope Sparks for AEA The National Credit Union Administration website brings good news for the AEA, as they post in their website that the agency has improved during the first quarter of this year. The agency however still has a lot…...
- AEA Progresses But Have Problems with Bad Debt AEA Progresses But Have Problems with Bad Debt Based on the call report of the credit union during the first quarter of this year, there are a few flickers of progress for AEA. The call report was put online this week in…...
- Buy a Car with Poor Credit Through the Help of Credit Unions Buy a Car with Poor Credit Through the Help of Credit Unions If you are planning to buy a car, but you have poor credit, then you are having a financial problem. Purchasing a car is not an easy process, and…...
- Credit Unions Assist People with No Credit Credit Unions Assist People with No Credit If you are aspiring to open a small business, for instance, landscaping, you will more likely need a loan. However, if you do not have any credit at all, going to a bank will…...
Filed under: bad credit • Credit • credit cards • Credit Score
Like this post? Subscribe to my RSS feed and get loads more!