Question

How did the corporate credit unions perform during the financial crisis? Write at least 250 words.

Please don't copy from anywhere and write in your own words.

Answer 1

Credit unions—rural, urban, large, and small—did not contribute to the subprime meltdown or the subsequent credit market crisis. Credit unions are careful lenders. As not-for-profit cooperatives, our objective is to maximize member service.A bad economy can make things even worse. Small credit unions come under tremendous pressure as they attempt to advise, consult with, and lend to their members. In addition, all credit unions have suffered as a result of the effects of the financial crisis of corporate credit unions. Despite these substantial hurdles, rural credit unions are posting comparatively strong results, and they continue to lend. Loans grew by 7 percent in the 12 months ending in March compared to a 3-percent decline at all banks. There are several concerns raised by small credit unions, and rural credit unions in particular, that deserve mention. The credit union movement has seen small institutions merge into larger credit unions at an alarming pace.While credit unions have fared better than most financial institutions in these turbulent times, many have been impacted, through no fault of their own, by the current economic environment. Credit unions were not the cause of the current economic downturn, but we believe we can be an important part of the solution. Surveys of NAFCU member credit unions have shown that many are seeing increased demand for mortgage and auto loans as other lenders leave the markets.