Credit union policies and performance in Latin America
AbstractThis paper explores empirical linkages between credit unions' (CUs') policies and their financial performance, as measured by loan delinquency and profitability, using a unique micro dataset of credit unions in three Latin American countries. The estimated translog profit function is generalized using a slack variable concept that parameterizes any systematic deviation from profit- maximizing behavior exhibited within the sample. In general, we find that performance depends in important ways on two types of CU policy variables, some associated with the incentives of borrowers to repay and others that affect the CU's ability to screen loans.
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Bibliographic InfoPaper provided by Federal Reserve Bank of Philadelphia in its series Working Papers with number 98-1.
Date of creation: 1998
Date of revision:
Other versions of this item:
- Westley, Glenn D. & Shaffer, Sherrill, 1999. "Credit union policies and performance in Latin America," Journal of Banking & Finance, Elsevier, Elsevier, vol. 23(9), pages 1303-1329, September.
- Glenn Westley & Sherrill Shaffer, 1997. "Credit Union Policies and Performances in Latin America," Research Department Publications, Inter-American Development Bank, Research Department 4086, Inter-American Development Bank, Research Department.
- Glenn D. Westley & Sherrill Shaffer, 1997. "Credit Union Policies and Performances in Latin America," IDB Publications 6430, Inter-American Development Bank.
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