As our nation's economy struggles to gain momentum, many ofAmerica's credit unions continue to feel the ripple effects fromthe recent financial crisis. Looking beyond today's challenges,however, the credit union industry seems poised for a new era ofgrowth. By offering new products and exploring new approaches,credit unions can simultaneously improve services for members,enhance consumers' satisfaction, appeal to a wider universe ofpotential members and increase the lending that helps strengthenAmerica's economy.

We must remain vigilant, of course, about the financial concernsafflicting the credit union system. Delinquencies and loan losseswill likely continue to increase in 2010, and credit union failureswill probably rise again. The number of credit unions downgraded toCAMEL 4 and 5 almost doubled during the recession-and those creditunions hold more than 5% of all insured shares. Many of the 7,600federally insured credit unions, while still adequatelycapitalized, will record negative earnings and thus drain theircapital.

Yet even if we're not fully out of the woods, far-sighted creditunions can look ahead toward better conditions-and positionthemselves to ensure their future strength. I see fouropportunities that offer promising pathways for growth.