NY Credit Unions See Across-the-Board Growth in First Quarter of 2012
& Originate $695 Million in Member Business Loans during Same Period
ALBANY, NY (07/27/2012)(readMedia)-- New York credit unions' growth rates for assets, savings (shares), members and loans outperformed national averages in the first quarter of 2012, according to Callahan & Associates statistics for the period.
Credit union assets in the state grew more than 4 percent to $60,368,424,307. Savings held at New York credit unions also grew more than 4 percent to $52,174,026,219.
The membership growth rate over the past 12 months for New York credit unions was 2.9 percent, exceeding the industry average of 1.9 percent. In just the first quarter of 2012, more than 56,000 credit union members were added, bringing total membership to a record 4.68 million.
Outstanding business loans at New York credit unions increased 14.6 percent from March 2011 levels, with credit unions originating $695 million in member business loans in the first three months of 2012 alone. Over the same time period, outstanding small business loans at New York banks decreased.
"As the numbers show, New York's credit unions have been doing a great job of working with small businesses to get them the loans they need-especially at a time when the financial crisis of the past few years has resulted in a reduction of available business credit from traditional banking outlets," said William J. Mellin, president/CEO, Credit Union Association of New York. "Credit unions have proven to be a viable solution to help fill the lending gap – not to mention a less expensive one – for small businesses looking to secure the credit they need to build and grow."
Legislation is currently pending in Congress that would enable credit unions to increase their business lending, in turn, adding an infusion of much-needed credit into the small business lending market. It's estimated that, if passed, this provision would make approximately $13 billion in capital available and create 140,000 jobs nationwide in the first year* at no cost to taxpayers.
"While this legislation would stimulate the economy, banks-which control about 95 percent of the business lending market-have been fiercely fighting its passage," continued Mellin. "I strongly believe that the time has come for Congress to pass this bill for the good of our country's economy."
The Credit Union Association of New York has served as the trade association for the state's credit unions for 95 years. New York credit unions have assets of more than $60 billion and serve 4.68 million members. To learn more about the Association, visit www.cuany.org.
*According to the Credit Union National Association