CUNA Mutual reference guide targets small credit unions

MADISON, Wis. - CUNA Mutual Group has developed a comprehensive reference guide to help small credit unions build their lending portfolio. The 90-page reference guide entitled "Keys to Successful Lending for Small Credit Unions" includes ideas on member-friendly lending policies, lending operations that move money, managing lending risks, building a product line and marketing loan products. "We developed the reference guide in response to the 1999 Filene Research Institute study that showed that thriving small credit unions are highly effective lenders," said CUNA Mutual Vice President of Small Credit Union Development Steve Goldberg. Results of the study indicate that a vigorous loan program goes hand-in-hand with small credit union success. Thriving small credit unions outperformed their shrinking peers and the movement as a whole in asset growth, loan growth, membership growth and net income to average assets (ROA). The loan-to-share ratio of a sample of 400 thriving small credit unions was 81.6%, far above a group of 400 shrinking small credit unions with a ratio of 65.6%. The average loan-to-share ratio of all credit unions was 72.6%, nearly 10 percentage points below the thriving small credit unions. The reference guide also includes a lending program checklist, top 10 reasons to concentrate on lending, sample member-friendly loan policies, nine steps to an open-end lending program, several self assessments and more. Credit unions can view an executive summary of the reference guide at www.smallcu.com. "Keys to Successful Lending for Small Credit Unions" is available to small credit unions with less than $20 million in assets. The first copy of the reference guide is free. Each additional copy must be purchased. For more information please contact a CUNA Mutual Group relationship manager at 800-333-2644. -mbourjolly@cutimes.com