Credit Union to Mutual Conversion : Do Rates Diverge?
AbstractThis study conducts a cross-sectional analysis of 175 depository institutions, assessing the impact on the interest rates charged on loan products and offered on savings products by the size of the institution, its liquidity, its net worth, its tax and salary payments, and its status as a for-profit institution, a credit union, or a converted credit union. We find that banks and converted credit unions have interest rates significantly less favorable for consumers than credit unions, suggesting that a credit union converting will result in adverse interest rate movements for its customers.
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Bibliographic InfoPaper provided by UW-Whitewater, Department of Economics in its series Working Papers with number 06-01.
Length: 30 pages
Date of creation: Feb 2006
Date of revision:
Find related papers by JEL classification:
- G2 - Financial Economics - - Financial Institutions and Services
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-03-11 (All new papers)
- NEP-FIN-2006-03-11 (Finance)
- NEP-FMK-2006-03-11 (Financial Markets)
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