A deep dive into the current credit risk environment

Credit unions are experiencing a shift in loan performance, with several factors leading to the situation at hand. This month’s edition of the Economic Update provides an in-depth analysis of the current credit risk environment and how credit unions and their members are managing it.

“Credit unions saw record loan growth in 2022 – but it appears that these loans behave differently from pre-pandemic loans and contribute to higher delinquency. High interest rates and an increasing cost of living also make the situation more complex—even with the labor market close to full employment,” says Dawit Kebede, America’s Credit Unions’ senior economist. “While cumulative vintage delinquencies look concerning, current portfolio health shows signs of stabilization if the unemployment rate holds relatively steady.”

Learn more in this month’s Economic Update: