If more people transfer their accounts to credit unions it could be a mixed blessing for some credit unions. However, that’s a challenge credit unions would be glad to worry about.
Credit unions may have to find ways to invest the money they would receive from new deposits that could come on or around the so-called Bank Transfer Day on Nov. 5. That could be a challenge because of low interest rates and caps on business loans, according to several industry experts.
“The new deposits push credit unions in a tough position because there is an increase in liquidity with nothing to invest in,’’ said former NCUA Board Member Geoff Bacino.
But former NCUA Chairman Dennis Dollar said since most of the new deposits would be in the form of checking accounts, it’s a net plus for credit unions.