In the fourth quarter, investments at corporate credit unions totaled $29.7 billion, or 7.7% of the investment portfolio. This is down significantly from a few years ago, as the corporate credit union system has been through unprecedented changes since 2009. New regulations from the NCUA have resulted in fundamental changes to the operations of many corporate credit unions. New rules shifted the corporates’ business focus from their historical role as a key partner in liquidity management for credit unions to, largely, transaction processing.
Total investments at corporates fell $8.5 billion from the $38.1 billion total in 2011, and they are down $45.9 billion since 2009, when corporate investments made up 26.8% of total investments. As investments in corporates have fallen, other components of the investment portfolio have risen significantly. Government and agency securities have been the primary beneficiary of the shift, increasing from $115.6 billion, 41.0% of the portfolio, in 2009 to $200.5 billion in the fourth quarter, 51.9% of the portfolio.
INVESTMENTS AT CORPORATE CREDIT UNIONS OVER TIME
DATA AS OF DECEMBER 31, 2012
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