NJCUL Submits Testimony Before the N.J. Assembly Financial Institutions & Insurance Committee on State of the Industry

HIGHTSTOWN, N.J. – The New Jersey Credit Union League Monday submitted testimony before a New Jersey Assembly Financial Institutions & Insurance Committee hearing regarding the general condition of the banking industry in New Jersey.

The testimony highlights credit unions’ cooperative structure and member-owners as well as provides a snapshot of the industry in New Jersey. “New Jersey is home to a very strong credit union industry,” the testimony states. “New Jersey credit unions average more than 10.72% capital, well over their required 7% and an increase of over 1/4% since we last reported to you in February.”

Credit union lending in New Jersey is strong, the testimony points out, including business lending. “Overall loan volume by New Jersey credit unions increased by 2.8% in the year ending September 2016. Thirty-six New Jersey credit unions offer small business loans and the average 2015 credit union member business loan in here in the Garden State was approximately $333,000. New Jersey credit union net charge-off ratios remain near all-time lows and return on assets in the state averaged 0.26% over the past decade.”

The testimony goes on to thank Committee Chair Assemblyman Craig J. Coughlin (D) for his co-sponsorship of legislation that will allow credit unions and banks to offer new incentives to save in New Jersey through prize-linked savings accounts. The testimony also outlines a number of credit union concerns, including the lengthy process to secure a foreclosure judgment and stagnant progress concerning legislation that would mandate Electronic Lien and Titling implementation.

Click here to access the testimony in its entirety.