Capital Adequacy and Capital Regulation of US Credit Unions
Posted: 29 Oct 2009
Date Written: September 1, 2009
Abstract
The article examines the determinants of capital-asset ratios for credit unions in the United States, before and after the implementation of current framework for capital adequacy regulation in the year 2000. Credit unions appear to hold capital in excess of what is required by current capital regulations. The fact that credit unions take longer than banks to accumulate net worth might have encouraged a more prudent, pro-cyclical approach to capital supervisioning. In general they entered the crysis in a stronger position to absorb unforseen losses than many banks.
Keywords: capital adequacy, credit unions, capital regulation
JEL Classification: G21, G28, G32
Suggested Citation: Suggested Citation