Industry Analysis & Industry Trends
Like the rest of Australia's Finance subdivision, credit unions have been hurt by the successive cash rate cuts over the past five years. As the Australian economy transitions from an emphasis on mining to non-mining sectors, the Reserve Bank of Australia has cut the cash rate to historic lows. This has had a detrimental effect on the interest income generated from credit unions' loan portfolios. Even more damaging was the effect of many credit unions exiting the industry as they converted to bank status, which led to a portion of the industry's revenue and asset base being instead reclassified to the National and Regional Commercial Banks industry. As a result, industry revenue is forecast to decline at an annualised 15.8% over the five years through 2015-16 to reach $1.7... purchase to read more
Industry Report - Industry Products Chapter
In general, credit unions offer the same basic products and services as the commercial banks, though of a more limited variety, partly due to their small size and reduced resources. Unlike banks, whose customer base is split between individuals and businesses, credit unions primarily service individuals. As a result, credit unions' most popular products are residential and personal loans. The mix of industry products has continued to shift towards residential lending over the past five years.
Real estate lending mainly consists of mortgages for homeowners. These can be variable or fixed-interest mortgages and tend to have maturities of more than 20 years... purchase to read more