Credit unions continued to gain a larger share of U.S. loans inthe third quarter, but loan growth might slow in 2017 underPresident-elect Donald Trump, according to bank and credit unionreports released this week.

CUNA Mutual Group's “CreditUnion Trends Report” released Monday showed total assets rose8.3% to $1.3 trillion from a year earlier, while loans grew 10.2%to $868 billion.

Meanwhile, the FDIC Quarterly Banking Profile released Tuesdayshowed that total assets for banks grew 6.1% to $16.8 trillion,while loans rose 6.8% to $9.2 trillion.

Combined, the share of assets held by credit unions was 7.21% onSept. 30, up from 7.08% a year earlier and 7.18% on June 30. Creditunion loan share was 8.59% on Sept. 30, up from 8.35% a yearearlier and 8.46% on June 30.

CUNA Mutual forecasts loan growth falling to 9% in 2017 forcredit unions as government spending pushes up economic growth,inflation and interest rates.

“The election of Donald Trump has changed the outlook foreconomic growth, inflation and interest rates for the next fewyears,” the report said. “It appears interest rate normalization has begun, and with it slower loangrowth.”

The combination of big infrastructure spending and tax cutscould boost economic growth by 0.5 to 1 percentage point above theforecasted annual growth rate of 2.2%, the report said.

“This will add to the growing inflationary pressure the economyis already experiencing as it approaches full employment andpotential output,” it stated.

That, in turn, could lead the Fed to raise rates faster andhigher than it would have raised them otherwise.