The Federal Reserve Board eagle logo links to home page
Finance and Economics Discussion Series
Finance and Economics Discussion Series logo links to FEDS home page The Impact of Credit Unions on the Rates Offered for Retail Deposits by Banks and Thrift Institutions
Timothy H. Hannan

Abstract: Because of the increasing significance of credit unions as potential competitors for consumer deposits, this paper examines the impact of the market presence of credit unions, variously measured, on the rates for three different types of consumer deposits offered by banks and thrift institutions. In contrast to previous studies, the sample employed covers the nation as a whole, incorporates all large urban areas, and employs survey data on deposit rates for a substantially larger number of institutions than previously employed. Despite circumstance that are argued to militate against the finding of a relationship, regression analyses yield positive coefficients of the measures of credit union presence, with statistical significance in a number of cases.

Keywords: Competition, banks, credit unions

Full paper (51 KB PDF)

Home | FEDS | List of 2003 FEDS papers
To comment on this site, please fill out our feedback form.
Last update: February 27, 2003