 30% increase in new loans supplied by credit unions
One in every ten borrowers are now using a mutual bank for home loan, according to Abacus, the organization representing the Australian mutual sector, which includes the credit unions.
The downfall of unregulated lenders over the last three years thus resulted to 30% increase in new loans supplied by credit unions and building societies. Moreover, the market share of credit unions and building societies on “new owner occupied home loan commitments” has increased from 6.4% to 8.6% for a year period.
“While a lot of attention during the GFC was on government efforts around the world to stablise large banks, credit unions and building societies remained strong because they had a secure member base and their structure is such that they lend from their retail deposits rather than accessing toxic overseas wholesale markets,” said to Abacus CEO Louise Petschler.
Abacus recently launched over two million worth national TV advertising campaign that highlights mutual banks’ success through the GFC.
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