CUBS bad debts at historic lows 07 November 2007 5:27PM John Phillips Databank, The KPMG survey identified no signs of decline in credit quality for building societies and credit unions for financial year 2007, with both financial sectors out performing the major banks bad debt expense strongly.Credit union bad debt expense dropped 21 per cent for the year, with bad debts expense to average gross receivables at 0.07 per cent.Building societies remained stable at 0.02 per cent, which indicates the sectors enjoy a superior loan book to the major banks.Provisions to gross receivables for building societies remained stable at 0.04 per cent, with credit unions decreasing to 0.10 per cent. The low ratios are entirely consistent with the very low bad debt expense.The major banks total provision to gross receivables is around 0.60 per cent for 2007.