Title
Credit union loan rate determinants following the 2008 financial crisis
Publication Date
1-1-2015
Publication Name
Social Science Journal
Volume
52
Issue
3
First Page
364
Last Page
373
Source Full Text URL
https://doi.org/10.1016/j.soscij.2014.11.001
Document Type
Article
DOI
10.1016/j.soscij.2014.11.001
Abstract
© 2014 Western Social Science Association. Previous studies show that a variety of institutional and market variables influence cross-sectional variation in the interest rates that credit unions charge on loans. This study examines the behavior of loan interest rates using nationwide credit union data for the fourth quarter of 2009 in the United States. Results from this sample of more than 6,700 individual credit unions corroborate earlier research indicating that credit union competition tends to suppress loan rates and that economies of scale exist at these financial intermediaries. In contrast to prior studies, however, credit unions with higher net worth ratios are found to charge higher interest rates on loans.