In another effort to showcase why credit unions should keep their tax-exempt status, Callahan & Associates on Wednesday gave the Obama administration a report extolling how the industry helped people last year.
“Today, 7,491 credit unions manage more than $797 billion in savings, $572 billion in loans, and more than $101 billion in capital,” Chip Filson, president of Callahan & Associates, said in a statement accompanying the report. “However, the fundamental strength of the system is not based on numbers; it is based on member loyalty and the responsible management of credit.”
The report noted that there was strong loan growth in the second half of last year and loan originations during that period helped 19.3 million members. While the consulting firm submits a report to the administration every year, it takes on special significance this year in light of discussions of eliminating certain expenditures, including the tax-exempt status of credit unions.
“Credit unions provided a source of credit for members and provided more financial solutions than what might be available from a purely market-driven system. It’s because of this dual role that credit unions have a tax exemption,” the report said.