CREDIT UNIONS: An Economic Theory of a Credit Union

Smith, Donald J.; Cargill, Thomas F.; Meyer, Robert K.

doi:10.1111/j.1540-6261.1981.tb00470.x

Cited by 62 publications

(56 citation statements)

References 4 publications

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“…As a result, in some countries, such as the USA, credit unions are granted a not-for-profit status. Third, members create both supply of and demand for loanable funds, and the credit union serves as an intermediary between internal savers and borrowers (Smith et al 1981). As such, credit unions represent a co-operative enterprise focusing on the specific financial needs of its members.…”

Section: Theoretical Background Knowledge Management In the Financialmentioning

confidence: 99%

An application of the knowledge management maturity model: the case of credit unions

Serenko

Bontis

Hull³

2016

Knowledge Management Research & Practice

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The purpose of this study is to investigate the level of knowledge management (KM) maturity of credit unions. The application of a maturity model to fifteen credit unions in North America revealed that an overall level of KM maturity of credit unions is at an early stage of development, but there are signs of future improvement. Credit unions attempt to increase their efficiency through KM solutions. Despite the absence of official KM strategies, KM projects were introduced locally to fill particular knowledge gaps. The availability of IT infrastructure and the implementation of KM-related technologies alone are insufficient to ensure universal success of KM activities. Credit union managers periodically access and use academic research in decision-making. At the same time, they prefer accessing scholarly knowledge in translated form from books, practitioner magazines, and consultants. It was concluded that organizations competing in the knowledge-intensive sector have an inner need for KM solutions.

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Section: Theoretical Background Knowledge Management In the Financialmentioning

confidence: 99%

An application of the knowledge management maturity model: the case of credit unions

Serenko

Bontis

Hull³

2016

Knowledge Management Research & Practice

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“…There are models describing how credit unions set their interest rates to compensate members (Smith et al, 1981;Emmons and Mueller, 1998;Emmons and Schimd, 2002). To the best of our knowledge, general models describing the activities of all types of cooperative banks are not available.…”

Section: Cbs Credit Unions Commercial Banksmentioning

confidence: 99%

“…Even though both types of members (borrowers and depositors) may gain from better interest rates compared to non-members, there is a potential internal conflict concerning the benefit allocation. The conflict resolution is based on the prevalence of one type of member over the other (Smith et al, 1981;Emmons and Schimd, 2002). When members are asked to vote in the general assembly, if the median voter shifts from borrower to depositor, the resulting benefit redistribution choice could change accordingly.…”

Section: Cooperative Banks and Credit Unions: A Literature Reviewmentioning

confidence: 99%

“…In the literature, the theoretical framework for credit unions setting interest rates has been well developed (Smith et al, 1981;Smith, 1984Smith, , 1988. Contrarily, other forms of cooperative banks have received less attention; in particular, studies emphasizing the influence of members and non-members are extremely rare.…”

Section: Cooperative Banks and Credit Unions: A Literature Reviewmentioning

confidence: 99%

“…Additionally, there is an important factor that characterizes cooperative banks' behavior and outcomes, which does not apply to credit unions: the role of nonmembers and their contribution to the members' overall welfare through bank deposits and interest earnings. In this paper, we move from the Smith et al (1981) model developed to describe credit unions' pricing policy on interest rates and we propose a more general model by incorporating nonmember depositors and borrowers, who play a key role in determining cooperative banks' interest rates. …”

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confidence: 99%

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Optimal Interest Rates in Cooperative Banks with Non-member Customers

Catturani¹,

Venkatachalam²

2014

JEOD

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AUTHORPrevious attempts to understand the functioning of cooperative banks have often considered them as being similar to credit unions. However, we argue that credit unions are only a subset of cooperative financial institutions and the models used to describe their behavior cannot be generalized to all cooperative banks. Additionally, there is an important factor that characterizes cooperative banks' behavior and outcomes, which does not apply to credit unions: the role of nonmembers and their contribution to the members' overall welfare through bank deposits and interest earnings. In this paper, we move from the Smith et al. (1981) model developed to describe credit unions' pricing policy on interest rates and we propose a more general model by incorporating nonmember depositors and borrowers, who play a key role in determining cooperative banks' interest rates.

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Strategic Governance Lessons from History for West African Microfinance Cooperatives

Périlleux

2013

Strategic Change

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CREDIT UNIONS: An Economic Theory of a Credit Union

Cited by 62 publications

References 4 publications

An application of the knowledge management maturity model: the case of credit unions

An application of the knowledge management maturity model: the case of credit unions

Optimal Interest Rates in Cooperative Banks with Non-member Customers

Strategic Governance Lessons from History for West African Microfinance Cooperatives

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