ARLINGTON, Va.—Credit union leaders’ outlook on the economy and the future of their credit union rose in January, bouncing back from a decline in optimism in December, NAFCU’s Credit Union Sentiment Index (CUSI) shows.
The CUSI indicated credit union optimism rebounded as growth and earnings improved from the prior month.
However, the regulatory component of the CUSI fell, likely as a reaction to the CFPB’s credit card late fees proposed rule, according to NAFCU’s analysis of the data.
Separately, NAFCU's latest Economic & CU Monitor survey shows that one in three respondents indicated the current interest rate ceiling had constrained their credit union’s lending activity. Credit card loans were identified as the most impacted, followed by personal loans, other unsecured loans, and auto loans. NCUA voted to keep the ceiling at 18% for another 18 months during the agency’s first board meeting of the year.
Support for Floating Rate
A strong majority of survey respondents (88%) are in favor a floating interest rate ceiling to address constraints of the 15% ceiling set by the Federal Credit Union Act.
Nearly half of the respondents (48%) indicated that changing lending conditions had prompted their credit union to reconsider the length of loan terms offered to their members. The survey’s CUSI suggested that overall loan demand was relatively subdued in the final quarter of last year but rose in January, NAFCU noted.
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