Nebraska credit union representatives met with U.S. Senator Deb Fischer in Omaha on September 23rd at Centris FCU. Credit union representatives provided insight into the economy through their daily interactions with members as well as economic trends they are seeing at the credit union. Loan growth at credit unions remains strong while member deposits are shrinking. The NCUA’s recent report on credit union growth backs that up with the agency reporting in September that loan growth was up 16% over the year which is the largest year over year increase in loan growth in two decades according to the agency.
Credit union representatives indicated that mortgage lending has significantly decreased with the rise in interest rates but that personal loans are increasing. The Federal Reserve raised interest rates on September 22nd by another 75 basis points for the third consecutive time as it continues to try and bring down inflation. The Fed is expected to raise rates further in the coming months.
Credit unions also urged Senator Fischer to protect credit union card programs by opposing Senator Durbin and Senator Marshall’s S. 4674 the Credit Card Competition Act which aims to drive down interchange fees paid by merchants. The bill would threaten a working payments system with higher costs for financial institutions while decreasing the amount of income they receive through their credit card programs.
