Industry Analysis & Industry Trends
Like the rest of Australia's Finance subdivision, credit unions have been hurt by the global financial crisis and a slowing 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 mining to non-mining sectors, the Reserve Bank of Australia has dropped interest rates to historic lows. This decimated the revenue generated from lending portfolios. Even more detrimental was the effect of credit unions leaving the industry and taking portions of revenue and asset base with them. As a result, industry revenue is forecast to decline at an annualised 8.8% over the five years through 2014-15 to reach $2.4... purchase to read more
Industry Report - Industry Analysis Chapter
Even though the worst of the global financial crisis took place more than five years ago, its effects on the financial sector are still evident today. Like other finance industries, credit unions have been hit hard by the global financial crisis. Furthermore, the conversion of eligible credit unions to banks has resulted in fewer enterprises, reduced assets and lowered aggregate industry revenue. IBISWorld forecasts industry revenue to contract at an annualised 8.8% over the five years through 2014-15.
The industry is forecast to generate revenue of $2.4 billion in 2014-15, down 4.8% from the previous year. However, this representation of the industry's performance is misleading due to the reclassification of several credit unions as banks... purchase to read more