IDEAS home Printed from https://ideas.repec.org/a/ijc/ijcjou/y2019q4a6.html
   My bibliography  Save this article

The Determinants of Credit Union Failure: Insights from the United Kingdom

Author

Listed:
  • Jamie Coen

    (Bank of England, London School of Economics)

  • William B. Francis

    (Bank of England)

  • May Rostom

    (Bank of Canada)

Abstract

We use a proprietary data set on credit unions from the United Kingdom to develop an early-warning model of credit union failure. We find that a small set of financial attributes related to capital adequacy, asset quality, earnings performance, and liquidity, augmented with unemployment rates, reliably identifies failures within one year. Our results support the existing literature which, to date, has largely relied on data from the United States. This work therefore provides further evidence for establishing early-warning criteria for use by international regulators.

Suggested Citation

  • Jamie Coen & William B. Francis & May Rostom, 2019. "The Determinants of Credit Union Failure: Insights from the United Kingdom," International Journal of Central Banking, International Journal of Central Banking, vol. 15(4), pages 207-240, October.
    • Handle: RePEc:ijc:ijcjou:y:2019:q:4:a:6
    as

    Download full text from publisher

    File URL: http://www.ijcb.org/journal/ijcb19q4a6.pdf
    Download Restriction: no
    File URL: http://www.ijcb.org/journal/ijcb19q4a6.htm
    Download Restriction: no
    ---><---

    Citations

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


    Cited by:

    1. Sanders, Austen & Willison, Matthew, 2021. "Measure for measure: evidence on the relative performance of regulatory requirements for small and large banks," Bank of England working papers 922, Bank of England.
    2. Pål M Vik & Joanna Curtis & Karl T Dayson, 2023. "The impact of COVID-19 on UK community finance institutions – Implications for local economic development," Local Economy, London South Bank University, vol. 38(5), pages 423-442, August.

    More about this item

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

    Statistics

    Access and download statistics

    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:ijc:ijcjou:y:2019:q:4:a:6. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Bank for International Settlements (email available below). General contact details of provider: https://www.ijcb.org/ .

    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.