Credit Union To Mutual Conversion: Do Rates Diverge?

This paper conducts a cross-sectional analysis of 175 depository institutions, assessing the impact on the interest rates charged on loan products and offered on savings products by the size of the institution, its liquidity, its net worth, its tax and salary payments, and its status as a for-profit institution, a credit union, or a converted credit union. The authors find that banks and converted credit unions have interest rates significantly less favorable for consumers than credit unions, suggesting that a credit union converting will result in adverse interest rate movements for its customers.

Provided by: University of Wisconsin-Whitewater Topic: Software Date Added: Mar 2006 Format: PDF

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