Banks vs. credit unions: dynamic competition in local markets
AbstractOne interesting aspect of the financial services industry is that for-profit institutions such as commercial banks compete directly with not-for-profit financial intermediaries such as credit unions. In this article, we analyze competition among banks and between banks and credit unions using a dynamic model of spatial competition. The model allows for the co-existence of (for-profit) banks and (not-for-profit) credit unions. Using annual county-level data on banking market concentration and credit-union participation rates for the period 1989-96, we find empirical evidence of two-way competitive interactions between banks and credit unions.
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Bibliographic InfoPaper provided by Federal Reserve Bank of St. Louis in its series Supervisory Policy Analysis Working Papers with number 2002-10.
Date of creation: 2002
Date of revision:
Other versions of this item:
- William R. Emmons & Frank A. Schmid, 2000. "Banks vs. credit unions; dynamic competition in local markets," Working Papers 2000-006, Federal Reserve Bank of St. Louis.
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