In its April 2020 Credit Union Trends report, based on data from February, CUNA Mutual Group found that:
- the COVID-19 pandemic is expected to decrease credit unions’ loan growth rate to only 2% in 2020, down from 6.5% last year, due to dismal new auto sales and weak home sales;
- the latest economic forecasts have the economy contracting at a 20% annualized pace in the second quarter, the unemployment rate rising over 15% and deflationary pressures pushing the inflation rate into negative territory; and
- the COVID-19 pandemic is expected to decrease credit union loan-to-asset ratios to 65% by the end of 2020, down from 71% at the end of 2019.
To view the full report, click here.
In addition to the regular trends report, Steven Rick, chief economist for CUNA Mutual Group, provides video commentary on the current economic conditions facing credit unions and what leaders need to know as they work to serve member needs.
The video commentary can be accessed on CUNA Mutual Group’s webpage.
The Credit Union Trends Report is a monthly “pulse check” on the state of the credit union marketplace, often placed in a historical context. The report includes data from two months prior and is published and distributed by Rick. The Trends Report is intended to provide a review and analysis of recent credit union financial performance and operational results in the context of recent economic activity. Data and analysis are provided to establish standards against which credit unions’ own performance can be compared.