Credit Unions Versus Banks: Preliminary Findings
8 Pages Posted: 14 Jun 2010
Date Written: June 14, 2010
Expanded use of credit unions would benefit savers, borrowers, insurance funds, taxpayers, and the financial system. Specific advantages created by the expanded use of credit unions include: higher interest rates to savers, lower interest rates to borrowers, less credit rationing during periods of financial turmoil, lower size-adjusted failure rates, lower insurance fund loss rates, and a reduction in too-big-to-fail incentives.
Keywords: credit unions, interest rates, too-big-to-fail, banking, credit rationing
JEL Classification: G00, G21
Suggested Citation: Suggested Citation