The Effect of Common Bond on Credit Union Performance: The Case of Black-Controlled Credit Unions

1987 ◽  
Vol 15 (4) ◽  
pp. 89-98 ◽  
Author(s):  
Harold A. Black ◽  
Robert L. Schweitzer
Keyword(s):  
Economic Development ◽  
Financial Institutions ◽  
Credit Unions ◽  
Credit Union ◽  
Institutional Characteristics ◽  
Common Bond ◽  
Black Economic ◽  
Black Economic Development ◽  
Financial Characteristics ◽  
Unique Relationship

This article compares the financial characteristics of black-controlled credit unions by type of common bond. The study found that many of the operational differences of these credit unions can be attributed to institutional characteristics associated with the three distinct types of credit unions. It also found that black credit unions are viable financial institutions, regardless of type of common bond. This finding is linked to the ownership of credit unions by its membership. This unique relationship has implications for black economic development.

Income structure, diversification strategy and owners’ benefit in cooperative financial institutions

2020 ◽  
Vol 16 (4) ◽  
pp. 481-500
Author(s):  
Hoang Van Cuong ◽  
Hiep Ngoc Luu ◽  
Loan Quynh Thi Nguyen ◽  
Vu Tuan Chu
Keyword(s):  
Financial Institutions ◽  
Credit Unions ◽  
Credit Union ◽  
Least Square ◽  
Policy Implications ◽  
Diversification Strategy ◽  
Income Diversification ◽  
Significant Drop ◽  
Content Type ◽  
Common Bond

PurposeThe purposes of this paper are twofold. First, it analyses the income structure in cooperative financial institutions and examines how traditional and non-traditional incomes are related. Second, it evaluates whether increasing diversification towards non-traditional incomes facilitates or hampers the benefits of financial cooperative owners.Design/methodology/approachData are collected from over 3,100 US credit unions over the period of 1994–2016. A number of modern econometric techniques are employed throughout the analysis, including the use of panel fixed effect, generalised method of moments (GMM) and two-stage least square (2SLS) methodologies.FindingsUsing US credit unions as the empirical setting, the empirical results reveal that the expansion of traditional income leads to a corresponding increase in income from non-traditional activities. However, an increasing reliance on non-traditional income causes a significant drop in interest margins. The authors also find that the extent to which income diversification affects owner benefit varies across credit union types and period of time. While income diversification negatively affects owners' benefits in single common bond credit unions, it has no significant influence on multiple common bond and community credit union owners' benefits. Third, diversification can be beneficial during crisis time, but can be detrimental to owner benefit during normal time.Originality/valueThis paper provides some of the first empirical investigations on the diversification strategy of cooperative financial institutions. Therefore, the results offer significant policy implications for policymakers and market participants on whether financial cooperatives should diversify or specialise.

Black Economic Development.

1972 ◽  
Vol 87 (2) ◽  
pp. 336
Author(s):  
Roger E. Alcaly ◽  
William F. Haddad ◽  
G. Douglas Pugh
Keyword(s):  
Economic Development ◽  
Black Economic ◽  
Black Economic Development

scholarly journals Bridging the Gap? Government Subsidized Lending and Access to Capital

2013 ◽  
Vol 2 (1) ◽  
pp. 98-128 ◽  
Author(s):  
Kristle Romero Cortés ◽  
Josh Lerner
Keyword(s):  
Community Development ◽  
Financial Institutions ◽  
Regression Discontinuity ◽  
Financial Institution ◽  
Credit Unions ◽  
Credit Union ◽  
First Year ◽  
Public Funds ◽  
Union Activity

The consequences of providing public funds to financial institutions remain controversial. We examine the Community Development Financial Institution (CDFI) Fund’s impact on credit union activity, using hitherto little studied U.S. Treasury data. The CDFI Fund grants increase lending at credit unions by 3%. For every dollar awarded, 45 additional cents are loaned out to borrowers in the first year, and up to an additional $1.60 is loaned out within three years. Delinquent loan rates also increase slightly. Our panel results are supported by a broadband regression discontinuity analysis. Politics does not seem to play a role in allocating funding. (JEL G28)

Emerging Issues in Black Economic Development.

1978 ◽  
Vol 7 (1) ◽  
pp. 79
Author(s):  
Martin E. Danzig ◽  
Benjamin F. Bobo ◽  
Alfred E. Osborne
Keyword(s):  
Economic Development ◽  
Black Economic ◽  
Black Economic Development ◽  
Emerging Issues
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