Your Credit Union's Credit Union

2001 was a year of significant growth of the Corporate Credit Union Network. However, this phenomenal growth is only a reflection of corporates continuing to do what they do best - expertly manage liquidity and provide the products and services credit unions need.

 
 

This article on the state of the corporate credit union system was excerpted from page 14 of Callahan's 2002 Credit Union Financial Yearbook. Graphs were produced using Callahan's Corporate Peer-to-Peer software program - the leading diagnostic tool on corporate credit unions to evaluate financial performance.

was a year of significant growth of the Corporate Credit Union Network. However, this phenomenal growth is only a reflection of corporates continuing to do what they do best - expertly manage liquidity and provide the products and services credit unions need. Corporates continued to maintain strong capital levels. In fact, their capital (reserves and undivided earnings, paid-in capital and membership capital shares) grew from $ 4,824,617,817 in November 2000 to $ 5,414,026,827 in November 2001, an increase of 12.22%. In addition, in the same period of time, assets ballooned from $56.5 billion to $91.5 billion, a 61.91% increase.

Corporates' strength in the payments arena also continued to burgeon. Last year, U.S. corporates processed over one billion items on behalf of their member credit unions. They transferred over $612 trillion in incoming and outgoing wires and automated clearinghouse transactions. They facilitated over $17.1 billion in cash for their members and they offered over $13.7 billion in approved credit lines to members. Corporates' strength is their ability to leverage economies of scale in the areas of item processing, payments settlement and investments for credit unions' benefit.

In 2002, corporates will continue to work hard to meet or exceed the rates paid on agencies and Treasuries. Many of the products that corporates have structured---either through US Central or individually ---also meet the terms and other features of agencies. Callables, amortizing certificates and bullets are all being marketed in many corporates at rates equaling or exceeding those of comparable agencies. As certificates, many of the negatives of other types of securities are not present (FAS 115, etc.).

In addition to the products and services that corporates have traditionally provided, many of them now have expanded their offerings to better serve the nations credit unions. Brokerage service, consulting, web site design, statement rendering and Internet access to account and detail data are just a few of the new corporate solutions for their members. Partnerships between corporates of all sizes have allowed many services to be developed in a cooperative, low-cost high-value method that ultimately saves credit unions real dollars. Credit unions remain corporates' only focus.

 

 

 

April 22, 2002


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