Credit edit: Credit unions being reclassified as banks has caused revenue declines

IBISWorld’s Credit Unions market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.


Industry Analysis & Industry Trends

Successive cash rate cuts over the past five years have hurt the Credit Unions industry's performance. As the Australian economy transitions away from mining and towards non-mining service sectors, the RBA has cut the cash rate to historic lows. The cuts have had a detrimental effect on the interest income generated on credit unions' loan portfolios. Even more damaging has been the effect of many credit unions exiting the industry due to their conversion to bank status. As a result, a portion of the industry's revenue and asset base has been reclassified to the National and Regional Commercial Banks industry. Subsequently, industry revenue is forecast to decline at an annualised 15.9% over the five years through 2016-17, to $1.61 billion. Industry revenue is projected to decline by 15.0%...

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Industry Report - Starting a New Business Chapter

The Credit Unions industry is characterised by a high level of barriers to entry. The regulatory requirements imposed on potential entrants, the difficulty in accessing funds, the established presence of existing credit unions' branch networks in potential markets and the difficulty in attaining and retaining a loyal customer base all pose significant barriers to entry. Potential entrants also need to withstand competition from other authorised deposit-taking institutions, such as banks, if they are to operate successfully.

The regulatory requirements imposed on credit unions and any potential businesses seeking to enter the industry are highly stringent. This makes it difficult for new entrants to set up operations and compete successfully. Fur..

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Industry Products

What is the Credit Unions Industry?

This industry consists of financial institutions known as credit unions or cooperatives, which are owned by their members. Industry players provide their members with banking services, mainly deposit taking and lending.

Industry Products
Residential mortgages
Personal loans
Commercial loans
Deposit accounts and other
Industry Activities
Mortgage lending
Personal lending
Commercial lending
Deposit accounts

Table of Contents

About this Industry

Industry Definition
Main Activities
Similar Industries
Additional Resources

Industry at a Glance

Industry Performance

Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle

Products & Markets

Supply Chain
Products & Services
Demand Determinants
Major Markets
International Trade
Business Locations

Competitive Landscape

Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
industry Globalisation

Major Companies

Operating Conditions

Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance

Key Statistics

Industry Data
Annual Change
Key Ratios

Jargon & Glossary

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