Impact Of Credit Union Mergers On Member Services
Credit unions are consolidating at a fast rate. But unlike banks, the impact of this industry trend has not been extensively researched. This paper offers tests of the impact of mergers on the efficiency of credit unions and indirectly on the quality of member services. The authors employ data envelopment analysis techniques to estimate efficiency scores for individual credit unions. In most years, they find no difference in efficiency between acquirers and those they acquired. They also find that credit unions that merged in 1997-1998 became less efficient following the merger relative to other credit unions that relied on internal growth.