Are De Novo credit unions in trouble?
De Novo or start up credit unions are not performing well. Of the last five de novo credit unions, two have been liquidated and one is currently operating as “uncapitalized.” The two credit unions that were liquidated both failed within six months of starting, making them some of the quickest failures since 2016. Former National Credit Union Administration Chairman Todd Harper stated, “New credit unions often unfortunately do fail, and they fail quickly because of a lack of expertise, a failure to follow their business plans or unanticipated consequences.” Since 2016, only 28 new credit…
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