Economies of Scale in Credit Unions: Further Evidence

Wolken, John D.; Navratil, Frank J.

doi:10.1111/j.1540-6261.1980.tb03497.x

Cited by 29 publications

(20 citation statements)

References 5 publications

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“…These studies implicitly must presume that credit unions are homogeneous in the organizational objectives. For instance, the studies on economies of scale by Koot (1978), Wolken and Navratil (1980), White (1980, 1983), and Fry et al (1982) and on the demand for labour by Taylor (1979) are based on an assumption of cost minimization by credit unions. If, however, many credit unions were of a saver preference type, they might choose intentionally to incur certain additional costs to pay implicit dividends on deposits, for instance, long office hours or excess personnel for short waiting times.…”

Section: I M P L I C a T I O N A N D S I G N I F I C A N C E Of Thmentioning

confidence: 99%

A test for variant objective functions in credit unions

Smith

1986

Applied Economics

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Section: I M P L I C a T I O N A N D S I G N I F I C A N C E Of Thmentioning

confidence: 99%

A test for variant objective functions in credit unions

Smith

1986

Applied Economics

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“…Our estimate of returns of scale factor in British Columbia is 1.0543. This compares with Murray and White's [ 13 ] unweighted average of 1.0704.1 o Wolken and Navratirs [ 15 ] estimate is between 1.036 and 1.249 for U.S. credit unions. 11 Estimates of technological change (using equation (1.6)) are found in the second eolurrm of Table 6.…”

Section: Economies Of Scale and Technological Changementioning

confidence: 71%

“…The relationship between Ours (19) and that found in Table 1 of Wolken and Navratil [15] (/l) is O = 1//~. Our estimate of returns of scale factor in British Columbia is 1.0543.…”

Section: Economies Of Scale and Technological Changementioning

confidence: 82%

Measuring returns to scale and technological change in co-operative banks: A provincial analysis of Canadian credit unions and caisses populaires

Chan

Mountain

1986

Empirical Economics

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In Canada economies of scale m credit unions come not only from large single office arrangements but from external economies realized from belonging to central provincial credit unions. Making use of aggregate provincial time series and cross-sectional data, this study begins by employing a sequential Akaike's Information Criterion (AIC) test to select the most appropriate model. This procedure permits the isolation of economies of scale from technological change effects. For all provinces, economies of scale are discovered to be significantly different from 1, and for five of the eight provinces examined, technological change was statistically significant from zero. The larger the provincial organization, as illustrated by the Quebec caisses populaires, the higher we find estimates of returns to scale and technological change. An implication may be that both expansion and more centralization should be encouraged and that other provinces may be able to increase efficiency by imitating some of Quebec's operational and administrative practices.In the last few decades, the co-operative banking movement in Canada has exemplified one of the largest rates of growth among all financial intermediaries. The membership in these co-operative institutions which are known as caisses populaires in Quebec and credit unions in the rest of Canada, has increased at the surprising rate of roughly 125% from 1967 to 1980 reaching approximately 40% of the total population. Furthermore, in terms of total assets, caisses populaires and credit unions (hereafter collectively referred to as credit unions) rank number four after the chartered banks, the trust companies and the life insurers.The rapid expansion of the credit union industry in Canada and other countries have provided the focal point of many empirical studies about returns to scale. Studies dealing with this issue trace back to Taylor [ 14]. Articles dealing with the U.S. We would like to thank Doug Brown and Alvin Lo for computational assistance.0377-7332/86/040207-222 $2.50 9 1986 Physica-Verlag, Wien, Heidelberg

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“…The institution's cost structure may be a function of the institution's size. There is evidence to suggest that there are economies of scale in credit unions (see Wolken and Navratil, 1980;Kim, 1986;Wilcox, 2005;Wilcox, 2006). We controlled for size by taking the natural log of assets (post-event).…”

Section: Finding the Expected Rate Vectormentioning

confidence: 96%

Detecting abnormal credit union performance

Bauer¹

2008

Journal of Banking & Finance

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Economies of Scale in Credit Unions: Further Evidence

Cited by 29 publications

References 5 publications

A test for variant objective functions in credit unions

A test for variant objective functions in credit unions

Measuring returns to scale and technological change in co-operative banks: A provincial analysis of Canadian credit unions and caisses populaires

Detecting abnormal credit union performance

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