The Impact of Credit Unions on the Rates Offered for Retail Deposits by Banks and Thrift Institutions

24 Pages Posted: 4 Jun 2003

See all articles by Timothy H. Hannan

Timothy H. Hannan

Federal Reserve Board - Department of Research & Statistics

Date Written: February 2003

Abstract

Because of the increasing significance of credit unions as potential competitors for consumer deposits, this paper examines the impact of the market presence of credit unions, variously measured, on the rates for three different types of consumer deposits offered by banks and thrift institutions. In contrast to previous studies, the sample employed covers the nation as a whole, incorporates all large urban areas, and employs survey data on deposit rates for a substantially larger number of institutions than previously employed. Despite circumstance that are argued to militate against the finding of a relationship, regression analyses yield positive coefficients of the measures of credit union presence, with statistical significance in a number of cases.

Keywords: Competition Banks Credit Unions

JEL Classification: D40, L10, L4, G21

Suggested Citation

Hannan, Timothy, The Impact of Credit Unions on the Rates Offered for Retail Deposits by Banks and Thrift Institutions (February 2003). FEDS Working Paper No. 2003-06. Available at SSRN: https://ssrn.com/abstract=386880 or http://dx.doi.org/10.2139/ssrn.386880

Timothy Hannan (Contact Author)

Federal Reserve Board - Department of Research & Statistics ( email )

20th and C Streets, NW
Mailstop 153
Washington, DC 20551
United States
202-452-2919 (Phone)
202-452-3819 (Fax)

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