|Dwight Johnston, Vice President and Chief Economist for the California and Nevada Credit Union Leagues|
LAGGING IN LOANS: EXAMINE THE 'WHY'
updated 08/19/13 01:27 PM
CA, NV Versus the U.S.
For the past 10 years or longer, California and Nevada credit unions have maintained loan-to-share ratios at or above the national average. In fact, the loan-to-share ratio in 2008 for credit unions in both states was 85 percent compared to 79 percent for credit unions nationwide.
The tide started turning in 2009, and now California and Nevada credit unions are reporting a loan-to-share ratio of 59 percent compared to the national ratio of 66 percent. That gap hasn’t narrowed.
The recession hit California and Nevada disproportionately harder than the United States, leading to less demand for loans. Additionally, many credit unions out West were forced into survival mode.
Then the recovery sputtered into gear across the country. Despite this, loan demand appears to be lagging in California and Nevada.
Is that really the case? Or are California and Nevada credit unions missing the boat?