ARLINGTON, Va.—Credit union executive confidence in the economy and especially their forecast for lending continues to improve, according to NAFCU’s latest Credit Union Sentiment Index (CUSI).
The CUSI, based on NAFCU member responses to eight questions on growth and earnings outlook, lending conditions and regulatory burden, continued its slow-but-steady climb in June, as two of four components rose versus May, NAFCU reported.
Of note, the largest increase was in lending, where applicant quality nearly reached its highest point on record and survey respondents also noted a large improvement in loan demand.
Findings on BSA/AML Compliance
Separately, NAFCU’s new Economic & CU Monitor report shows the number of credit union staff responsible for BSA/AML compliance had increased in the past five years, which roughly corresponds with the share of respondents reporting an increase in currency transaction reports (CTRs) filed by the credit union over the same timeframe, the association reported.
According to NAFCU, credit unions also experienced an increase in the volume of suspicious activity reports (SARs) filed over the past five years, the study shows. Under BSA requirements, credit unions are required to file SARs in several circumstances; however, a majority of respondents indicated that they rarely receive a follow-up contact from federal or state agencies that might suggest the SAR was useful for investigating a financial crime, NAFCU found.
Leveraging PATRIOT Act
In addition, 45% of respondents indicated they took advantage of the information sharing authorities provided under the USA PATRIOT Act, which grants credit unions the ability to share information with one another, under a safe harbor that offers protections from liability, in order to better identify and report activities that may involve money laundering or terrorist activities, NAFCU reported.