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Bank competition and concentration: do credit unions matter?

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  • William R. Emmons
  • Frank A. Schmid

Abstract

One interesting aspect of the financial services industry is that for-profit institutions, such as commercial banks, compete directly with not-for-profit financial intermediaries, such as credit unions. In this article, William R. Emmons and Frank A. Schmid analyze the competition between banks and credit unions. Using annual county-level data on banking-market concentration and household participation rates at occupational credit unions for the period between 1989 and 1996, the authors find empirical evidence of two-way competitive interactions between banks and credit unions.

Suggested Citation

  • William R. Emmons & Frank A. Schmid, 2000. "Bank competition and concentration: do credit unions matter?," Review, Federal Reserve Bank of St. Louis, vol. 82(May), pages 29-42.
    • Handle: RePEc:fip:fedlrv:y:2000:i:may:p:29-42:n:v.82no.3
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    References listed on IDEAS

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    Cited by:

    1. Michiel van Leuvensteijn & Jacob Bikker & Adrian van Rixtel & Christoffer Kok Sørensen, 2011. "A new approach to measuring competition in the loan markets of the euro area," Applied Economics, Taylor & Francis Journals, vol. 43(23), pages 3155-3167.
    2. Charles Okeahalam, 2007. "Economics of access in a developing country: an analysis of firm‐conduct in financial services," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 34(12), pages 923-942, October.
    3. David Ely & Kenneth Robinson, 2009. "Credit Unions and Small Business Lending," Journal of Financial Services Research, Springer;Western Finance Association, vol. 35(1), pages 53-80, February.
    4. Adam Baszynski, 2011. "Mergers and acquisitions in the banking sector and the competitive structure of the banking services market in Poland since 2004," Ekonomia i Prawo, Uniwersytet Mikolaja Kopernika, vol. 7(1), pages 391-407, December.
    5. William R. Emmons & Frank A. Schmid, 2004. "When for-profits and not-for-profits compete: theory and empirical evidence from retail banking," Supervisory Policy Analysis Working Papers 2004-01, Federal Reserve Bank of St. Louis.
    6. John R. Walter & Patricia E. Wescott, 2008. "Antitrust analysis in banking : goals, methods, and justifications in a changed environment," Economic Quarterly, Federal Reserve Bank of Richmond, vol. 94(Win), pages 45-72.
    7. Robert M. Feinberg, 2003. "The Determinants of Bank Rates in Local Consumer Lending Markets: Comparing Market and Institution‐Level Results," Southern Economic Journal, John Wiley & Sons, vol. 70(1), pages 144-156, July.
    8. Dereeper, Sébastien & Lobez, Frédéric & Statnik, Jean-Christophe, 2020. "Bank credit rates across the business cycle: Evidence from a French cooperative contracts database," Journal of Banking & Finance, Elsevier, vol. 112(C).
    9. Sherrill Shaffer, 2002. "Conduct in a Banking Monopoly," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 20(3), pages 221-238, May.
    10. Christian E. Weller & Amy Helburn, 2009. "Public Policy Options to Build Wealth for America’s Middle Class," Working Papers wp210, Political Economy Research Institute, University of Massachusetts at Amherst.
    11. Shaffer, Sherrill, 2004. "Patterns of competition in banking," Journal of Economics and Business, Elsevier, vol. 56(4), pages 287-313.
    12. Jean-Noël Ory & Yasmina Lemzeri, 2008. "An appraisal of « cooperative banks » versus « plc banks » efficiency: a focus on the French situation and a European perspective," Cahiers du CEREFIGE 0801, CEREFIGE (Centre Europeen de Recherche en Economie Financiere et Gestion des Entreprises), Universite de Lorraine, revised 2008.
    13. Robert M. Feinberg & A.F.M. Ataur Rahman, 2006. "Are Credit Unions Just Small Banks? Determinants of Loan Rates in Local Consumer Lending Markets," Eastern Economic Journal, Eastern Economic Association, vol. 32(4), pages 647-659, Fall.
    14. Shaffer, Sherrill, 2001. "Banking conduct before the European single banking license: a cross-country comparison," The North American Journal of Economics and Finance, Elsevier, vol. 12(1), pages 79-104, March.
    15. 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.
    16. Michiel van Leuvensteijn & Jacob Bikker & Adrian van Rixtel & Christoffer Kok Sørensen, 2011. "A new approach to measuring competition in the loan markets of the euro area," Applied Economics, Taylor & Francis Journals, vol. 43(23), pages 3155-3167.
    17. Alexandre Pourchet & Andrée de Serres & Bernard de Montmorillon, 2014. "Une analyse néo-institutionnelle de l'évolution de la gouvernance et des activités métiers du Groupe Bancaire Coopératif en France," Post-Print hal-01457041, HAL.
    18. Tatom, John, 2005. "Competitive advantage: a study of the federal tax exemption for credit unions," MPRA Paper 4398, University Library of Munich, Germany.
    19. Christian Weller, 2010. "Have Differences in Credit Access Diminished in an Era of Financial Market Deregulation?," Review of Social Economy, Taylor & Francis Journals, vol. 68(1), pages 1-34.
    20. Michael A. Kouparitsas, 2005. "Is there evidence of the new economy in U.S. GDP data?," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 29(Q I), pages 12-29.
    21. Jordan van Rijn & Shuwei Zeng & Paul Hellman, 2021. "Financial institution objectives and auto loan pricing: Evidence from the survey of consumer finances," Journal of Consumer Affairs, Wiley Blackwell, vol. 55(3), pages 995-1039, September.
    22. repec:dau:papers:123456789/13773 is not listed on IDEAS
    23. Griffith, Ronnie & Waithe, Kimberly & Lorde, Troy & Craigwell, Roland, 2009. "The contribution of credit unions to the national development of Barbados," MPRA Paper 33439, University Library of Munich, Germany.
    24. Michiel van Leuvensteijn & Jacob Bikker & Adrian van Rixtel & Christoffer Kok Sørensen, 2011. "A new approach to measuring competition in the loan markets of the euro area," Applied Economics, Taylor & Francis Journals, vol. 43(23), pages 3155-3167.
    25. Jean-Noël Ory & Mireille Jaeger & Emmanuelle Gurtner, 2006. "La banque à forme coopérative peut-elle soutenir durablement la compétition avec la banque SA?," Revue Finance Contrôle Stratégie, revues.org, vol. 9(2), pages 121-157, June.

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