CUs find new ways to create liquidity.
From 2012 to 2018, the aggregate credit union loan-to-savings ratio rose by almost 20 points, from 68% to 86%, its highest level in 40 years. During those six years, loans outstanding grew by 73% (9.6% per year) while savings rose only 39% (5.6% annually). If these growth rates continue, the loan/savings ratio will reach 89% by the end of this year and 92.4% by the end of next. The credit union system doesn't yet face a liquidity crisis, as it did in the late 1970s, but for many credit unions, tight liquidity is a pressing issue.
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