MADISON, Wis. — In October 2006, the ratio of surplus funds to assets reached a record low of 25.5% for credit unions.
According to CUNA Mutual Group's most recent Credit Union Trends Report, at $185 billion, surplus funds fell 2.8% in October and were down 8.5% at $17 billion over the past year. More than 42% of the change in loans was accounted for by the reduction in surplus funds, the report noted. Borrowing $22 billion also funded loan growth.
Still, while "in aggregate, liquidity has tightened, [it] is still considered adequate," said Dave Colby, CUNA Mutual chief economist.
Recommended For You
"Tapping surplus funds to support additional loan demand should not be a problem with respect to interest rate risk, as 57% of these funds have a maturity of one year or less," Colby offered.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
