Credit union loan rate determinants following the 2008 financial crisis

Tokle, Robert J.; Fullerton, Thomas M.; Walke, Adam G.

doi:10.1016/j.soscij.2014.11.001

Cited by 18 publications

(10 citation statements)

References 27 publications

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“…These results therefore indicate that diversification only benefits credit union owners in the midst of a crisis but destroys benefits during “normal” times. Overall, this finding is consistent with the observation that credit unions tend to have more incentives to charge additional fees to compensate for a sharp drop of interest revenues due to a significant decrease in interest rates and weak demand for loans caused by a financial crisis (Tokle et al , 2015).…”

Section: Income Diversification and Owners' Benefitssupporting

confidence: 89%

Income structure, diversification strategy and owners’ benefit in cooperative financial institutions

Cương

Luu

Nguyen

et al. 2020

IJMF

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PurposeThe purposes of this paper are twofold. First, it analyses the income structure in cooperative financial institutions and examines how traditional and non-traditional incomes are related. Second, it evaluates whether increasing diversification towards non-traditional incomes facilitates or hampers the benefits of financial cooperative owners.Design/methodology/approachData are collected from over 3,100 US credit unions over the period of 1994–2016. A number of modern econometric techniques are employed throughout the analysis, including the use of panel fixed effect, generalised method of moments (GMM) and two-stage least square (2SLS) methodologies.FindingsUsing US credit unions as the empirical setting, the empirical results reveal that the expansion of traditional income leads to a corresponding increase in income from non-traditional activities. However, an increasing reliance on non-traditional income causes a significant drop in interest margins. The authors also find that the extent to which income diversification affects owner benefit varies across credit union types and period of time. While income diversification negatively affects owners' benefits in single common bond credit unions, it has no significant influence on multiple common bond and community credit union owners' benefits. Third, diversification can be beneficial during crisis time, but can be detrimental to owner benefit during normal time.Originality/valueThis paper provides some of the first empirical investigations on the diversification strategy of cooperative financial institutions. Therefore, the results offer significant policy implications for policymakers and market participants on whether financial cooperatives should diversify or specialise.

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Section: Income Diversification and Owners' Benefitssupporting

confidence: 89%

Income structure, diversification strategy and owners’ benefit in cooperative financial institutions

Cương

Luu

Nguyen

et al. 2020

IJMF

View full text Add to dashboard Cite

show abstract

“…Ceteris paribus, banks grow more prominent over time and accumulate experiences that newer banks do not have (Behr, Foos, & Norden, 2017). Besides, big banks would be able to hire high-quality staff than small banks, and these factors are expected to improve their efficiency in financial intermediation, demonstrated by lower interest rates (Tokle, Fullerton, & Walke, 2015). It is thus, anticipated that bank size would have a significant impact on the overall development of the financial sector.…”

Section: Bank Sizementioning

confidence: 99%

“…With the influx of foreign capital into Africa, large banks are more likely to receive foreign funds. Thus, it can be argued that having fewer big banks can foster financial development through economies of scale (Blomström, 1986;Tokle et al, 2015).…”

Section: Bank Competition and Financial Developmentmentioning

confidence: 99%

Banking Sector Competition and Financial Development in Sub-Saharan Africa

Ricky-Okine

Amankwaa

Anane³

2020

IJTMR

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The study sort to establishing a relationship between banking sector competition and financial development in subSaharan n Africa. The study further disaggregated the data used into Francophone and Anglophone countries, and these were examined separated and compared. Using an annual data on banks across 37 countries in Sub-Saharan Africa spanning the period 2001-2016 and employing the Fixed Effects estimation technique, the study revealed that there is a positive and significant relationship between financial development (FDCredit) and competition (CR3) for the full sample and the anglophone samples. The study further revealed that banking sector stability is essential for the financial development of both Anglophone and francophone countries within the sub-region. Macroeconomic variables did not have any impact on financial development generally except in francophone countries where exchange rates were found to have an impact on financial development. Bank-level variables such as ZSCORE, non-performing loans, profitability, liquidity and capitalization, on the hand had little impact in Anglophone countries on financial development compared to francophone countries. The study found that larger banks contribute positively to the development of the financial sector and banks tend to be bigger in Anglophone countries, and their banking sector is also more competitive than the francophone countries for the period used. Less emphasis should be placed on bank-level variables as these do not have significant impacts on the financial sector for Anglophone countries. Francophone countries should, however, control bank-level variables to ensure that they achieve greater financial development. Citation: Ricky-Okine, C. K., Amankwaa, T.and Anane, E.Banking Sector Competition and Financial Development in Sub-Saharan Africa,2020; 5(3): 58-85. Received: July 18, 2020Accepted: September 30, 2020

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“…Research was concerned with its differing effects on credit unions. This is exemplified by the increasing risk and consequent reforms of regulation Cerrone 2013;Vasserot 2014), sustainable growth (Dubauskas 2012), survival (Box et al 2013;Cato et al 2013;Kiršiene 2014), re-engineering (Bauer 2015), credit availability for small and medium-sized enterprises (Talbot et al 2015), and loan rate changes (Tokle et al 2015). In general, the studies argue that credit unions were resilient to, but not immune from, the GFC.…”

Section: Topicsmentioning

confidence: 99%

Mapping the literature on credit unions: a bibliometric investigation grounded in Scopus and Web of Science

et al. 2019

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Credit unions play a relevant role in providing microcredit and other financial services. Because such financial cooperative organizations have drawn the attention of a significant and growing academic literature, a bibliometric study becomes essential. This study comprehensively analyzes the literature on credit unions using the leading indices for bibliometric examination: Elsevier's Scopus and Clarivate Analytics' Web of Science databases. Our searches reveal a high level of complementarity between the databases concerning the subject. Their combined use has enabled us to extensively trace the evolution of studies on the subject regarding volume and impact. We identify the major countries, journals, authors, articles, intellectual basis and topics. Further, using CiteSpace, we have mapped the networks of co-authorship, co-citations, and co-keywords in credit union research. The findings allow us to conclude that economics and business finance are the principal areas of credit union research although articles in sociology and history were also observed. Finally, by investigating contemporary co-keywords clusters and future research directions, we identify four main avenues of research: economic performance, corporate governance, accounting and disclosure and, credit union to bank comparisons regarding customer relationships and technology.

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Credit union loan rate determinants following the 2008 financial crisis

Cited by 18 publications

References 27 publications

Income structure, diversification strategy and owners’ benefit in cooperative financial institutions

Income structure, diversification strategy and owners’ benefit in cooperative financial institutions

Banking Sector Competition and Financial Development in Sub-Saharan Africa

Mapping the literature on credit unions: a bibliometric investigation grounded in Scopus and Web of Science

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