Corporate Credit Union Lending Hits All-Time High

Loan growth that is faster than share growth at natural-person credit unions has powered corporates’ lending business to an all-time high.


Loans outstanding at corporate credit unions hit an all-time high of $4.8 billion in June 2005. This is a 53 percent increase from June 2004 and a 416 percent increase from June 2003.

Loans Outstanding at Corporate Credit Unions

Source:Corporate Peer-to-Peer

The increase in borrowings is driven by natural-person credit unions seeking liquidity to cover increasing loan/share ratios. The average loan/share ratio at credit unions was 76 percent as of June 2005, compared to 68 percent two years ago. Credit union borrowings have more than doubled in this same time period.

Gaining Market Share

In addition to increasing total loans outstanding, corporates have increased their share of natural-person credit union borrowings. Five years ago, corporate credit unions held just just five percent of all natural-person credit union borrowings, and now they have taken 26 percent of the market.

This data was pulled from Callahan's Corporate Peer-to-Peer Software. To learn more click here.