Credit Unions Remain Most Influential in Non-Revolving Loan Market

Mortgages have driven lending activity at credit unions over the last 18-24 months. While credit unions are breaking industry records in originations, they still hold only 2.5% of the entire origination market. With credit unions holding a similar share of credit card loans (3% of the market), they only hold significant market share in non-revolving loans - but their sway there has been declining.

 
 

Mortgages have driven lending activity at credit unions over the last 18-24 months. While credit unions are breaking industry records in originations, they still hold only 2.5% of the entire origination market. With credit unions holding a similar share of credit card loans (3% of the market), they only hold significant market share in non-revolving loans - but their sway there has been declining.

Non-revolving loans are one-time loans with regular payment schedules that are not real estate. The bulk of these balances are from auto lending. As the overall economy suffered, and credit unions had to compete with 0% financing, they had trouble keeping pace with other lending institutions.

Three years ago credit unions held 17.6% of all non-revolving loans. Even though loan balances have increased every year, they have not increased at the same rate as the entire market, and as such, credit union market share has decreased every year. As of June 2003 credit unions held 16.8% of non-revolving loans, significantly down, yet still above their 6.4% share of financial institution assets.

 

 

 

Oct. 6, 2003


Comments

 
 
 
  • Good macro perspective on things...thanks.
    Anonymous