Last week, 700,000 Department of Defense civilian employees began taking once-a-week furlough days that will cut their pay by roughly 15%. How will the temporary pay cuts affect credit unions?
NCUA Chief Economist John Worth said that while just under 2% of federally chartered credit unions have primarily military-based fields of membership, their relatively large size means they represent about 21% of federal credit union assets. The 82 federal credit unions that claim a military common bond include the nation's largest credit union, the $54 billion Navy Federal Credit Union, and the third largest, the $16 billion Pentagon Federal Credit Union.
Over the next three months of furloughs, Worth said it's reasonable to assume the pay cuts will have an impact on loan growth at affected credit unions.
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