Credit Unions take Advantage of Low Rates and Increase Borrowings in First Quarter

Credit unions increased their borrowings this quarter by 2% to $11.7 billion. With interest rates projected to rise and real estate loans increasing by 3.03% this quarter, many credit unions took advantage of the low borrowing rates to hedge their mortgage loans. The average rate paid on borrowings was 3.78% in the first quarter compared to 4.07% at year end 2003.The number of credit unions reporting borrowings increased as well to 529 credit unions, which represent about 5.6% of the industry.

 
 

Credit unions increased their borrowings this quarter by 2% to $11.7 billion. With interest rates projected to rise and real estate loans increasing by 3.03% this quarter, many credit unions took advantage of the low borrowing rates to hedge their mortgage loans. The average rate paid on borrowings was 3.78% in the first quarter compared to 4.07% at year end 2003.The number of credit unions reporting borrowings increased as well to 529 credit unions, which represent about 5.6% of the industry.

Short-term borrowings of less than a year still make up the largest amount of total borrowings for all credit unions at 45% of all borrowings. Borrowings between 1-3 years and long-term borrowings greater than 3 years composed 22.69% and 32.24% of all borrowings respectively.

 

 

 

June 7, 2004


Comments

 
 
 

No comments have been posted yet. Be the first one.