With a loan to asset ratio across the sector ranging from 11 percent to 73 percent today under the same lending framework, some credit unions are faring better than others at meeting member lending needs. Additional lending capacity is currently being considered under an ongoing consultation on ‘Potential Changes to the Lending Framework (CP125).
This additional capacity would facilitate further longer term lending on a prudent basis by credit unions while appropriately managing duration and concentration risks. It is clear therefore that credit unions have the required flexibility to evolve their future business models.