I have no loans with this CU and am not likely to seek any loans. I also have a Visa ther with zero balance, at an attractive rate. I have a decent amount of money on deposit there.
I can see why the institution would want to do this, but, as a “member,” part owner really, with funds “invested” in this particular institution, wouild you say that the risk to my deposits stays the same, increases or decreases, as a result of these changes?
It’s apparent to me, that the risk increases, with no increase in reward, in my particular situation.
You’re right, the risk does increase. I guess the degree of risk is based on the quality of loans they make off of this newly available money.
Your credit union might have been very conservative with high lending standards in the past. The general push from the Fed is for it’s member banks (and credit unions) to make more loans so they might be targeting good institutions like yours.