Klinedinst, Mark (2010): Bad loans in the meltdown: micro analysis of credit union performance versus banks, an initial investigation.
Download (250kB) | Preview
The current economic crisis has had a devastating impact in the credit markets as evidenced by bank failures, large bailouts and foreclosures. Trillions of dollars have been spent to prop up the financial sector in the U.S. alone. Credit unions, commercial banks and thrifts are where Americans go for home loans, but credit unions have a very different track record when it has come to bailouts from the government. Credit unions instead of taking trillions may ultimately not take a dime from the taxpayer. This paper will try to discern this advantage that credit unions have by focusing on the direct impact felt by financial institutions in the United States through net charge-offs from 1994 through 2009 using an exceptional data set that combines information on credit unions and banks in the U.S. from 1994 through 2009.
|Item Type:||MPRA Paper|
|Original Title:||Bad loans in the meltdown: micro analysis of credit union performance versus banks, an initial investigation|
|Keywords:||credit unions; banks; cooperative; defaults; net charge-offs|
|Subjects:||G - Financial Economics > G1 - General Financial Markets > G14 - Information and Market Efficiency ; Event Studies ; Insider Trading
P - Economic Systems > P0 - General
P - Economic Systems > P1 - Capitalist Systems > P13 - Cooperative Enterprises
L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L21 - Business Objectives of the Firm
G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
|Depositing User:||Mark Klinedinst|
|Date Deposited:||14 Dec 2010 18:43|
|Last Modified:||15 Oct 2016 13:51|
 Baltagi, B. H., 2005. Econometric Analysis of Panel Data, Wiley, New York
 Baltagi, B. H. and S. Khanti-Akom, 1990. “On the Efficient Estimation with Panel Data: An Empirical Comparison of Instrumental Variable Estimators, Journal of Applied Econometrics, 5, 401-406.
 Credit Union National Association (CUNA), 2010, “Basic Information About Credit Unions” http://www.cuna.org/press/basicinfo.html.
 Dodd-Frank, 2009. “Dodd-Frank Wall Street Reform and Consumer Protec tion Act” http://thomas.loc.gov/cgi-bin/bdquery/z?d111:H.R.4173.
 Federal Deposit Insurance Corporation, 2010, http://www2.fdic.gov/.
 FDIC, “Changes in Number of Institutions,” http://www2.fdic.gov/hsob/hsobRpt.asp, Accessed May 28, 2010.
 Fried, Harold O. and C. A. Knox Lovell, 1993. “Evaluating the Performance of Credit Unions,” University of Wisconsin and Filene Research Institute.
 Freifield, Karen, July 30th, 2009. “Banks Paid $32.6 Billion in Bonuses Amid U.S. Bailout,” Bloomberg News.
 Goddard J., McKillop D. and Wilson J. "Credit union size and growth: tests of the law of proportionate effect", Journal of Banking and Finance, 2002.
 Greer, Douglas F. and Stephen A. Rhoades, 1977. “Test of the Reserve Labour Hypothesis” The Economic Journal, Vol. 87, No. 346 (Jun., 1977), pp. 290-299
 Halary, Isabelle, 2006. “Cooperatives in Globalization: The Advantages of Networking,” in Klinedinst, M. A. & Kalmi, P. (Editors) (2006). Participation in the Age of Globalization and Information: Advances in the Economic Analysis of Participatory and Labor-Managed Firms, Volume 9, Amsterdam: Elsevier.
 Hausman, J.A., and W. E. Taylor, 1981. “Panel Data and Unobservable Individual Effects,” Econometria, 49, 1377-1398.
 Ichniowski, C., Shaw, K., and Prennushi, G. (1997), “The Effects of Human Resource Management on Productivity,” American Economic Review, 87 (June), 291-313.
 Johnson, Simon and James Kwak, 2010. “13 Bankers,” Random House, New York.
 Klinedinst, Mark and Charles Rock, 1993. “United States Credit Unions as Supporting Structures,” in Mahlingham and Smith, eds., Labour-Managed Market Economies, pp. 258-269. Mittal Publications, New Delhi, India.
 Klinedinst, Mark, 2007. “Cooperative Comebacks: Resilience in the Face of the Hurricane Katrina Catastrophe,” Filene Research Monographs.
 Kohers, T. and D. Mullis, 1988. “An Update on Economies of Scale in Credit Unions,” Applied Economics.
 Lieberman, Marvin B. and Shigeru Asaba, 1997. “Inventory Reduction and Productivity Growth: A Comparison of Japanese and US Automotive Sectors,”Managerial and Decision Economics, Vol. 18, pp. 73-85.
 Magdoff, Fred and Michael D. Yates, 2009. “The ABC’s of the Economic Crisis,” Monthly Review Press.
 Park, Kang H. and William L. Weber, 2006. “Profitability of Korean banks: Test of market structure versus efficient structure,” Journal of Economics and Business, Vol. 58, pp. 222-239.
 Schenk, Mike, 2006. “Commercial Banks and Credit Unions,” Credit Union National Association, http://advice.cuna.org/download/combanks_cus.pdf.
 Sollenberger, Harold M., 2008, Financially “High-Performing” Credit Unions: Evaluating Performance within a Strategic Financial Vision,” Filene Research Monographs.
 Stiglitz, Joseph, 2010. “Freefall,” W. W. Norton and Company, New York.
 White, H. 1980. “A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity,” Econometrica 48, 817-838.
 Whyte, William F. and Kathleen K. Whyte, 1991. Making Mondragon: The Growth and Dynamics of the Worker Cooperative Complex, Cornell University Press, New York.
 World Bank, 2010. “Social Capital,” http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTSOCIALDEVELOPMENT/EXTTSOCIALCAPITAL/0,,menuPK:401021~pagePK:149018~piPK:149093~theSitePK:401015,00.html.
 Zandi, Mark. Financial Shock, 2008. Financial Times Press, New Jersey.