Family First Credit Union - which has a branch in Mudgee - has announced its’ results for the last financial year by posting an increase of 6.4% in total assets, which included increases in savings and loans.

The credit union’s general manager, John Paine said “I am also pleased to see a 104% increase in profit due to increased income and a reduction in operating expenses over the year.”

Mr Paine explained that this result was especially pleasing given the turmoil in foreign banking sectors and the flow on effect this was having on the pricing of credit in Australia.

Referring to media coverage of the impact on home loan interest rates in Australia from developments in overseas lending markets, Mr Paine explained that credit unions do not fund the bulk of lending from wholesale and overseas sources, as is the practice of non-prudentially regulated lenders such as RAMS or Wizard.

“Family First Credit Union sources all its funding needs from retained earnings and deposits,” Mr Paine said.

Credit unions and building societies, along with banks, are authorised deposit-taking institutions (ADIs) subject to the same regulatory standards under the Banking Act 1959 and overview by the Australian Prudential Regulation Authority (APRA). Other lenders in the market – non-ADI lenders – are not subject to prudential standards.

“What Family First Credit Union has strived to achieve in the last 12 months is to balance the need to make sufficient profit with the desire to maintain competitive lending rates,” Mr Paine said.

“What we have achieved is a mortgage lending rate which is almost one per cent under the average standard variable rate charged by the big four banks which is a fantastic result for our borrowers” Mr Paine said.

“Family First Credit Union provides quality banking services aimed at providing benefits to individuals, families and our local communities and is proud to claim that it offers a different kind of banking.”