Squeezing out the piggybank Source: Adobe Stock.

Funding costs are rising at credit unions as core deposits diminish as a percent of assets and are replaced by higher-cost rate-sensitive funds, according to a report released Thursday by the Filene Research Institute in Madison, Wis.

The report, authored by credit union consultant Mike Higgins, found relationship shares —which include draft, regular shares and money market accounts — began falling as a percent of assets in the second half of last year after two years of sharp increases fed by pandemic-era government supports.

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Jim DuPlessis

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