Why Choose a Credit Union? Determinants of Credit Union Deposits
13 Pages Posted: 17 Mar 2010
Date Written: March 15, 2010
This study examines the impact of credit union risk characteristics and macroeconomic events on deposits. Looking at a sample of credit unions from 2004-2008 we find that credit union depositors do not consistently punish credit union by deposit withdrawal for risky behavior. Furthermore, we find that credit union deposits increase in times of economic uncertainty. This indicates that there is a group of people that consider credit unions a safe haven during an economic crisis, which sheds a whole new light on the importance of these financial institutions.
Keywords: credit unions, deposits, economic recession
JEL Classification: G20, G21
Suggested Citation: Suggested Citation