A ratio that helps credit unions measure and manageprofitability is net interest margin. For more than a decade, NIMfor credit unions has been under significant pressure. NIM isimpacted by a credit union's lending and investing strategies.While credit unions deserve an A+ for how well they have managedlending activities, industry data suggest there is room forimprovement in regard to investment management.

Inside the Numbers

U.S. credit unions hold assets worth $1.3 trillion, $386 billionof which is cash and investments. Nearly 80% of credit unioninvestments are allocated to either agencies or savings andloans/banks. The average yield on investments is 1.3%.

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