Michigan credit unions continue to show signs of growth, as a recent report from the National Credit Union Administration shows lending in the sector may even be offering a boon to local small businesses.
According to the report, lending to small businesses by credit unions grew by 18.1 percent to $1.09 billion during the second quarter. Meanwhile state banks scaled back their lending by 10.2 percent over the same period. In addition, used auto loans surged by 8.33 percent to bring total outstanding debt to $4.39 billion. Aside from mere lending figures, loan quality and employment in the sector have also improved, as delinquent loans fell from 1.81 percent to 1.53 percent alongside the addition of 194 employees within the past year. "The continued growth in credit union deposits shows that consumers are looking for a safe alternative to the volatile stock market for their savings," said David Adams, CEO of the Michigan Credit Union League & Affiliates. "Continued steady growth in deposits coupled with slow loan growth shows households are saving more and borrowing less." A report released last month by The Street found credit unions are offering greater deposit rates and targeting consumers markedly less than banks.