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Economic Update. Jordan van Rijn Senior Economist, CUNA PhD Candidate, UW-Madison September 17, 2018 CUNA Collections & Bankruptcy School. Overview. Credit Union Impact Update on the Economy & Forecasts Credit Union Trends & Forecasts Safety & Soundness at Credit Unions vs. Banks.
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Economic Update Jordan van Rijn Senior Economist, CUNA PhD Candidate, UW-Madison September 17, 2018 CUNA Collections & Bankruptcy School
Overview • Credit Union Impact • Update on the Economy & Forecasts • Credit Union Trends & Forecasts • Safety & Soundness at Credit Unions vs. Banks
Leading Causes of Bankruptcy • Medical expenses – 42% • Job loss / Unemployment – 22% • Uncontrolled spending – 15% • Divorce – 8% • Unexpected disasters – 7% Source: https://www.clearbankruptcy.com/financial-literacy/10-leading-causes-of-bankruptcy.aspx
Concerns • Rising interest rates • Trade war • Driverless cars / Ridesharing • Fintech competition • Regulatory changes
Compensation and Safety and Soundness • Performance-based incentives linked to: • Short-term planning • Excessive risk-taking • Fraud • Earnings manipulations • Shareholder lawsuits • Product safety problems • Sabotage and uncooperative behavior between workers • Financial crisis of 2008-2009
Thank you Jordan van Rijn Senior Economist, CUNA PhD Candidate, UW-Madison jvanrijn@cuna.coop