CUs Aren't Joining FHLBSF to Replace WesCorp
Despite problems in the corporate credit union system, the Federal Home Loan Bank of San Francisco is not reporting an increase in credit unions signing up for membership.
Stephen Traynor, senior vice president of Financial Services and Community Investment, said that while his FHLB has been a "viable competitor to corporates" for advances, it doesn't provide any settlement services, investments, or other core corporate services.
Rather, the cooperative bank's credit union business is driven by loan demand, he said. In 2009, the FHLBSF actually lost one credit union member over 2008's ranks. Of the bank's 411 members, currently 97-nearly one-quarter-are credit unions.
"Credit unions have been attracted to membership for a long time, and it's because on the West Coast, credit unions were more active in loan origination earlier, and in greater quantity than, credit unions on average nationwide," he said.
The bank has representatives in Monterey, Calif. attending the California Credit Union League's Big Valley Educational Conference for directors.