ARLINGTON, Va.—Despite persistent inflation, rising rates and predictions for a recession within the next year, credit union leaders are more optimistic about the future of their credit unions, according to an April poll.
NAFCU’s latest Credit Union Sentiment Index (CUSI) improved in April, as three out of the four components measured rose over the prior month: earnings, lending, and regulation.
The biggest jump took place in the lending index, with respondents' assessment of loan demand reaching its highest point since the pandemic, despite presumably seeing muted refinance demand amid rising mortgage rates, NAFCU stated.
The index is based on NAFCU-member CU responses to eight questions related to growth and earnings outlook, lending conditions and regulatory burden.
Separately, NAFCU's latest Economic & CU Monitor examined what credit unions are doing to promote financial literacy and community development initiatives.
Majority Offer Fin Lit
According to the Monitor, 88% of credit union respondents indicated they offered financial literacy programs. Among those who measured the impact of their programs on underserved and low-income members, 56% observed a positive impact.
In addition, a large share of credit union respondents – 83% – reported sponsoring financial literacy events in their community over the last year, through initiatives such as providing financial literacy curricula to local schools, offering financial coaching, and providing scholarships, according to NAFCU.