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US Credit Unions: An Empirical Investigation of Size, Age and Growth

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  • John Goddard
  • John O. S. Wilson

Abstract

An econometric analysis of the growth performance of US credit unions for the period 1992-2001 investigates empirical relationships between size, age and growth. Ceteris paribus larger credit unions grew faster than smaller unions. State credit unions grew faster than federal credit unions, and single bond credit unions grew faster than multiple bond credit unions. The size-growth gradients were generally steeper for state than for federal credit unions, and for single bond than for multiple bond credit unions. These patterns are attributed to variations in legislation and regulatory treatment. There is some evidence that younger credit unions tended to outgrow older ones. This seems consistent with a life cycle typology of credit union growth and development. There is also evidence of a positive persistence of growth effect. The cross-sectional variance of growth is inversely related to size, but is largely independent of age. Copyright CIRIEC, 2005.

Suggested Citation

  • John Goddard & John O. S. Wilson, 2005. "US Credit Unions: An Empirical Investigation of Size, Age and Growth," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 76(3), pages 375-406, September.
  • Handle: RePEc:bla:annpce:v:76:y:2005:i:3:p:375-406
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    Cited by:

    1. Bauer, Keldon J. & Miles, Linda L. & Nishikawa, Takeshi, 2009. "The effect of mergers on credit union performance," Journal of Banking & Finance, Elsevier, vol. 33(12), pages 2267-2274, December.
    2. Wim Fonteyne, 2007. "Cooperative Banks in Europe—Policy Issues," IMF Working Papers 07/159, International Monetary Fund.
    3. Goddard, John & McKillop, Donal & Wilson, John O.S., 2008. "The diversification and financial performance of US credit unions," Journal of Banking & Finance, Elsevier, vol. 32(9), pages 1836-1849, September.
    4. Bauer, Keldon, 2008. "Detecting abnormal credit union performance," Journal of Banking & Finance, Elsevier, vol. 32(4), pages 573-586, April.

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