Credit unions and risk
| Autor: | David P. Ely |
|---|---|
| Rok vydání: | 2014 |
| Předmět: | |
| Zdroj: | Journal of Regulatory Economics. 46:80-111 |
| ISSN: | 1573-0468 0922-680X |
| DOI: | 10.1007/s11149-013-9241-8 |
| Popis: | The structure of the credit union industry has been transformed by regulatory changes and the subsequent switch by many credit unions to community and multiple-bond fields of membership. This study explores the impact of these trends by testing for differences in risk across credit unions with different field-of-membership types. In tests for differences in risk of bankruptcy and of breaching regulatory standards, risk is found to be greater for credit unions with broader field-of-membership types. These differences in risk appear to derive from greater earnings volatility and lower ROA and net-worth ratios at community and multiple-bond credit unions. These differences in risk decline with greater asset size. Evidence is also presented that credit unions that switched from single-bond institutions to broader field-of-membership types now operate with greater risk. |
| Databáze: | OpenAIRE |
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