Industry Analysis & Industry Trends
Like the rest of Australia's Finance subdivision, credit unions have been hurt by the global financial crisis and the slowdown in the economy in 2008-09. Their mutual status, prudent lending and heavy reliance on deposits for funding have shielded the industry to some extent, but the past five years have been difficult nonetheless. As the Australian economy transitions from an emphasis on mining to non-mining sectors, the Reserve Bank of Australia has cut interest rates to historic lows. This has negatively affected revenue generated from lending portfolios. Even more detrimental was the effect of credit unions leaving the industry and taking portions of the revenue and asset base with them. As a result, industry revenue is forecast to decline at an annualised 10.4%... 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 more limited resources. Unlike banks, whose customer base is split between individuals and businesses, credit unions primarily service individuals. Due to the significance of this market, 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-rate mortgages and tend to have maturities of over 20 years... purchase to read more