UNINSURED DEPOSITS BY ASSET SIZE
FOR U.S. CREDIT UNIONS | DATA AS OF 12.31.22
© Callahan & Associates | CreditUnions.com
- Recent events in the banking industry — particularly Silicon Valley Bank’s insolvency and seizure by the FDIC — have left many credit union leaders wondering how likely their institutions are to experience a similar liquidity crisis.
- A major factor in SVB’s collapse was its significant concentration of deposits that weren’t insured by the FDIC. For U.S. credit unions, the dollar value of uninsured shares and deposits was $165.8 billion as of Dec. 31, 2022, up 6.9% annually. Uninsured shares accounted for 8.9% of total deposits, up from 8.6% year-over-year. However, 418 credit unions with more than $1 billion in assets held 82.0% of the industry’s uninsured deposits — meaning a small few held a majority of uninsured deposits.
- Larger-asset credit unions have historically held a higher percentage of uninsured deposits than their smaller peers. They also are more likely to hold more complex investment portfolios and tend to have more complex business models and infrastructure. As such, they also are subject to heavier regulatory oversight.
- Looking forward, all credit unions will need to manage their share and loan growth amid tightening liquidity. Making products such as certificate deposits or IRAs attractive for members would help cooperatives keep sufficient funds on their balance sheets.
How Does Your Liquidity Compare?
Use industry data to determine how your credit union performs against others, uncover new areas of opportunity, and support your strategic initiatives. Callahan’s credit union advisors are ready to show you how — are you ready to see how you stack up?
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