Get notifications in real-time for staying up to date with content that matters to you.
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.
Published: 30-04-08
Who do you aggregate through?
Thank you for your vote, you can see the results here.
RBA, APRA sing different tune on serviceability buffers
APRA chair Wayne Byres has dismissed the need for a cut to the bu...
Remodelled FHB scheme cops backlash
From 1 July, all applications for the FHLDS will require a Notice...
Building society employs video VOI process
Newcastle Permanent has introduced a new process to enable verifi...
The number one magazine for mortgage brokers
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
As Australia tries to keep pace with a rapidly changing business and social landscape in the wake of COVID-19, Momentum Media is leading the way delivering essential content to our communities, writes Alex Whitlock, director of The Adviser.
Receive breaking news direct to your inbox each day
