NEW YORK — Don't penalize your members for the bad economy and take advantage of the credit crunch by reaching out to those having trouble getting loans from weary banks.
Those are some of the survival techniques that CUNA's top economists offered for dealing with the recession, during their talk at America's Credit Union Conference and Expo.
CUNA Senior Vice President and Chief Economist Bill Hampel and Vice President of Economics and Statistics Mike Schenk said the recession could last into next year and said credit unions should take several steps to help themselves and their members.
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They should use some of their capital cushion to avoid raising fees and loan interest or reducing interest paid on accounts. Also, credit unions can find additional revenue by lending to people with good credit who have been shut out by other financial institutions.
Hampel said credit unions are for the most part suffering collateral damage from the mistakes of others that triggered the subprime crisis and the recession.
"The negative effects were not caused by credit unions and are not likely to be long lasting for them," he said.
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