ALEXANDRIA, Va.—The United Kingdom’s decision to leave the European Union—the Brexit—and the stock market’s reaction to the vote shows that credit unions need to ready for a number of potential economic and interest rate scenarios, according to NCUA.
NCUA’s Office of the Chief Economist is projecting that the Brexit could potentially affect the energy and manufacturing sectors, leading to slower economic growth in the United States, as well as push long-term rates down, further compressing credit union net interest margins.
That analysis can be found in the latest issue of the NCUA’s monthly newsletter. The July 2016 issue of The NCUA Report—now available in HTML—can be found online here.
The agency’s newsletter features columns from NCUA Board Chairman Rick Metsger and Board Member J. Mark McWatters, as well as articles from several NCUA offices on the agency’s initiatives and information on supervisory, regulatory and compliance issues that are important to all federally insured credit unions.