If more people transfer their accounts to credit unions because of Bank Transfer Day. it could be a mixed blessing for some credit unions. However, that's a problem many credit unions would be glad to worry about.
Credit unions have to find ways to invest the money they receive from new deposits on or around Bank Transfer Day on Nov. 5. That could be a challenge because of low interest rates and caps of business lending, 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.
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