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Credit unions and the supply of insurance to low income households


  • Pat McGregor


Credit unions are typically viewed as financial intermediaries that differ from commercial banks only in terms of their institutional structure. This ignores their historical development as mutual self-help societies. The distinctive feature of a credit union is taken in this paper to be the provision of insurance - membership gives access to credit in the event of a negative income shock. Banks do not provide such loans because of the low credit worthiness of such borrowers. The application of the model to those credit unions designated as low-income in the US allows them to be broken up into distinct types. Copyright CIRIEC, 2005.

Suggested Citation

  • Pat McGregor, 2005. "Credit unions and the supply of insurance to low income households," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 76(3), pages 355-374, September.
  • Handle: RePEc:bla:annpce:v:76:y:2005:i:3:p:355-374

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    References listed on IDEAS

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    Cited by:

    1. Butzbach Olivier & von Mettenheim Kurt E., 2015. "Alternative Banking and Theory," Accounting, Economics, and Law: A Convivium, De Gruyter, vol. 5(2), pages 105-171, July.

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