ARLINGTON, Va.–A new report from NAFCU that was shared with Federal Reserve Board Governor Michelle Bowman during a meeting seeks to not just show the “growing role” of credit unions in their communities but also to differentiate credit unions from banks.
“The 2021 NAFCU Report on Credit Unions exhibits how credit unions proactively and successfully stepped up to help Americans nationwide, including many low- and moderate-income communities, as they move forward from lasting effects of the coronavirus pandemic,” said NAFCU President and CEO Dan Berger. “It is clear that credit unions are willing and able to do even more to help local communities. The report overwhelmingly highlights the industry-wide desire for a modernized field of membership that allows credit unions to fill the gaps left by big banks…”
Report Highlights
According to NAFCU some highlights from the report include:
- The median bank has more than five times as many employees and more than six times as many assets as the median credit union
- Credit unions make a higher share of their mortgage loans to Black and Hispanic borrowers than banks
- Nearly 60% of credit unions express that field of membership issues were critical to their continued growth and success
- 93% of NAFCU survey respondents operate at least one program for the benefit of their members at a loss
- Nearly three-in-four credit unions say net interest margin will be a significant challenge over the next three years.