IDEAS home Printed from https://ideas.repec.org/a/fip/fedfel/y2005inov4n2005-29.html
   My bibliography  Save this article

Economies of scale and continuing consolidation of credit unions

Author

Listed:
  • James A. Wilcox

Abstract

This Economic Letter shows that, in contrast to banks, larger credit unions, on average, have decidedly lower average costs and higher net incomes, as we might expect in the presence of important economies of scale. It further notes that these economies of scale put pressure on the credit union industry to continue consolidating into fewer, larger credit unions. It also describes how some recent legislation may have further added to the pressures on both the banking and credit union industries to consolidate.

Suggested Citation

  • James A. Wilcox, 2005. "Economies of scale and continuing consolidation of credit unions," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, issue nov4.
    • Handle: RePEc:fip:fedfel:y:2005:i:nov4:n:2005-29
    as

    Download full text from publisher

    File URL: https://www.frbsf.org/research-and-insights/publications/economic-letter/2005/11/economies-of-scale-and-continuing-consolidation-of-credit-unions/
    Download Restriction: no
    File URL: https://www.frbsf.org/wp-content/uploads/el2005-29.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. James A. Wilcox, 2005. "Credit union failures and insurance fund losses: 1971-2004," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, issue aug19.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. James A. Wilcox, 2006. "Performance divergence of large and small credit unions," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, issue aug4.
    2. Malikov, Emir & Kumbhakar, Subal C. & Sun, Yiguo, 2016. "Varying coefficient panel data model in the presence of endogenous selectivity and fixed effects," Journal of Econometrics, Elsevier, vol. 190(2), pages 233-251.
    3. Bauer, Keldon, 2008. "Detecting abnormal credit union performance," Journal of Banking & Finance, Elsevier, vol. 32(4), pages 573-586, April.
    4. Emir Malikov & Diego A. Restrepo-Tobón & Subal C. Kumbhakar, 2018. "Heterogeneous credit union production technologies with endogenous switching and correlated effects," Econometric Reviews, Taylor & Francis Journals, vol. 37(10), pages 1095-1119, November.
    5. Javier Gómez‐Biscarri & Germán López‐Espinosa & Andrés Mesa‐Toro, 2022. "Drivers of depositor discipline in credit unions," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 93(4), pages 849-885, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. McKillop, Donal & French, Declan & Quinn, Barry & Sobiech, Anna L. & Wilson, John O.S., 2020. "Cooperative financial institutions: A review of the literature," International Review of Financial Analysis, Elsevier, vol. 71(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fedfel:y:2005:i:nov4:n:2005-29. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Federal Reserve Bank of San Francisco Research Library (email available below). General contact details of provider: https://edirc.repec.org/data/frbsfus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.