Good News, but this can only go so far until CUs run out of capital. Then they’d have to borrow at higher rate and that higher rate would push up their mortgage rate for everyone. And they can only borrow up to 25% of their capital.
Given that banks are now offering higher savings rates which can make them more atteactive than CUs and CUs accounts are limited to a max savings amount then theis would make it nearly impossible to fully compete with banks at a mass level.
6 comments
Good news
Big news, fuck the banks.
Great!
Article is behind a pay wall
paywall grrrrrr
Good News, but this can only go so far until CUs run out of capital. Then they’d have to borrow at higher rate and that higher rate would push up their mortgage rate for everyone. And they can only borrow up to 25% of their capital.
Given that banks are now offering higher savings rates which can make them more atteactive than CUs and CUs accounts are limited to a max savings amount then theis would make it nearly impossible to fully compete with banks at a mass level.