LATHAM, N.Y.- New York credit unions generate more than $610million in taxable wages and add an estimated $4.5 billion to theGross State Product, according to results of a new study conductedfor the New York State Credit Union League. Entitled “The Role ofCredit Unions in New York State,” the study quantifies for thefirst time the economic benefits of credit unions on New York'seconomy. “Credit unions have never been more important to New YorkState than they are today,” said William J. Mellin, president andCEO of the New York State Credit Union League, which held a pressconference June 14 in the state's capital to announce the surveyresults. “In communities all across New York, credit unions aremaking a big difference in the lives of ordinary people.” “Withcredit unions in the marketplace, consumers win, whether they'remembers or not,” said Brian P. O'Connor, the study's author and anindependent economist with New Jersey-based Ridgewood EconomicAssociates. “More New Yorkers can afford to invest in homes, carsand other assets that increase their quality of life-pumping newlife into a lagging economy.” The study, stated the New York StateCredit Union League, found that credit unions fill a unique role inthe market. Not only do they offer financial services at a lowercost and consequently drive down competitors' fees, “CUs alsoprovide the added feature of market accessibility for certainsegments of the population.” “The ripple effect is significant. Forevery direct effect credit unions have-whether in spurring economicactivity through lower loan rates or creating jobs-there's also anindirect effect that magnifies the benefit,” the League stated. Thestudy used federal and state labor statistics and U.S. CensusBureau data. Other findings from the survey show indirect effectsfrom firms that supply products or services to credit unions total:* 21,000 other industry jobs * $305 million in taxable wages *$13.4 million in personal income tax payments * $292.5 million indisposable income * $2.0 billion in Gross State Product Inaddition, CUs' direct and indirect economic contributions include:* 30,000 jobs * $610 million in taxable wages * $27 million inpersonal income tax payments * $585 million in disposable income *$4.5 billion in Gross State Product In addition to the economiccontributions to New York State, the survey examines how creditunions operate, identifies positive effects on local communities,and provides an in-depth analysis of New York State credit unions.For example, while total jobs in New York State declined 1.8% in2002, CU employment statewide increased 2.9%. The League forecasts2003 data will show the increase will top 4%. Mellin said thestudy's findings prove that, “Even though credit unions' marketshare in New York is less than two percent, this study shows thatour positive impact on the economy is clearly much moresignificant.” -

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