With the drop in member business lending in 2009, it may be a sign of the times, but the loans were still the fastest growing lending group for credit unions last year.
The MBL growth rate was 11% in 2009, according to CUNA statistics as of September 2009, the latest data on record. That contrasts with 2008′s rate of 18%, and 17% in 2007. Put in perspective, last year's rate of 11% is off considerably from the MBL growth rate in 2006 at 24.3% and 32.8% in 2005.
CUNA Chief Economist Bill Hampel said despite the drop, credit unions are in a much better business lending position than other financial institutions, which experienced a 15% decline. Still, MBLs were down as a result of the recession and unless legislators move to increase the current 12.25% cap, the pace of growth may not be sustained, he added.
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