Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Credit union M&As set to increase

Staff Reporter 1 minute read

Moody’s Investors Service (Moody’s) said today that the credit outlook for the Australian credit union sector was “negative” due to pressures from the global financial crisis.

Moody’s assistant vice president and analyst Marina Ip said the negative outlook applied principally to those credit unions with traditional business models that had “a structural reliance on wholesale funding, and securitisation in particular”.

The ratings agency also forecast increased consolidation activity in the sector as a result of funding and profit pressures, bank competition and the drive to increase economies of scale in the areas of regulatory compliance, accounting and IT.

“The credit union sector’s efficiency levels are held back by the large number of smaller institutions. Several may be struggling with rising operating costs,” said Ms Ip.

Despite the negative outlook, Moody’s said asset quality remained strong and the impact of delinquencies would be minimal because of the sector’s sound lending practices.

Advertisement
Advertisement

Published: 30-04-08

Credit union M&As set to increase
default
TheAdviser logo
default

TODAY'S POLL

View results >

Who do you aggregate through?

Thank you for your vote, you can see the results here.

more from the adviser
APRA RBA ta RBA, APRA sing different tune on serviceability buffers

APRA chair Wayne Byres has dismissed the need for a cut to the bu...

loanapplication Remodelled FHB scheme cops backlash

From 1 July, all applications for the FHLDS will require a Notice...

software digital ta Building society employs video VOI process

Newcastle Permanent has introduced a new process to enable verifi...

FROM THE WEB