Access the full text.
Sign up today, get DeepDyve free for 14 days.
(2016)
NCUA outlines plans for adding ‘S’ to credit union CAMEL ratings
(2017b)
The NCUA Report – Fourth Quarter Report
(2018)
Membership growth opportunities through mergers and acquisitions
Robert DeYoung, J. Goddard, D. Mckillop, John Wilson (2019)
Who Consumes the Credit Union Tax Subsidy?ERN: Firm Behavior & Competition (Topic)
(2013)
Efficiency in banking: theory and evidence
Keldon Bauer, Linda Miles, Takeshi Nishikawa (2009)
The effect of mergers on credit union performanceJournal of Banking and Finance, 33
Daniel Gropper (1995)
Product-line deregulation and the cost structure of US savings and loan associationsApplied Economics, 27
G. Benston, G. Hanweck, D. Humphrey (1982)
Scale Economies in Banking: A Restructuring and ReassessmentJournal of Money, Credit and Banking, 14
J. Wilcox (2005)
Economies of scale and continuing consolidation of credit unionsFRBSF Economic Letter
(2018)
Consumer sentiment is highest in 18 years
(2018)
The benefits and costs of the TARP bailouts
(2017a)
5300 Call Report aggregate financial performance reports (FPRs)
P. Halpern, G. Mathewson (1975)
Economies of scale in financial institutions: A general model applied to insuranceJournal of Monetary Economics, 1
David Walker (2016)
Credit Unions’ Rising Share of Small Business LoansJournal of Accounting and Finance, 16
M. Harjoto, Ha-Chin Yi, T. Chotigeat (2012)
Why do banks acquire non-banks?Journal of Economics and Finance, 36
Journal of Money, Credit and Banking, 32
G. Benston (1972)
Economies of Scale of Financial InstitutionsJournal of Money, Credit and Banking, 4
Joseph Hughes, Loretta Mester (2011)
Who Said Large Banks Don't Experience Scale Economies? Evidence from a Risk-Return-Driven Cost FunctionFRB-Philadelphia: Working Papers (Topic)
Steven Goldstein, J. Mcnulty, James Verbrugge (1987)
Scale economies in the savings and loan industry before diversificationJournal of Economics and Business, 39
David Wheelock, P. Wilson (2010)
Are Credit Unions Too Small?Review of Economics and Statistics, 93
Allen Berger, Sally Davies, M. Flannery (1998)
Comparing Market and Supervisory Assessments of Bank Performance: Who Knows What When?Board of Governors of the Federal Reserve System Research Series
In total, 14 credit unions have acquired 16 banks and savings institutions since 2012; 7 additional acquisitions are in progress and are expected to close before year-end 2019. The analysis of the population of these acquisitions spans the paths of annual differences in CAMEL ratios. Most acquirers have a somewhat revised capital structure and are often benefiting from economies of scope, as well as economies of scale. Since their acquisitions, the acquiring credit unions have become less risky, measured by simulated CAMEL ratios, and they are lending a larger share of their deposits. There is no apparent financial reason to discourage credit unions from acquiring additional banks and savings institutions. The National Credit Union Administration does not need to be particularly hesitant to allow credit unions to acquire banks and thrifts.Design/methodology/approachFinancial analysis is done via simulated CAMEL ratios.FindingsAfter acquiring banks, credit unions are less risky and lend a greater share of their deposits.Research limitations/implicationsThe study analyzes the population of the credit unions that have acquired banks since 2012, but the population consists of 14 banks acquiring 16 credit unions.Practical implicationsCredit unions should not be prohibited from further acquisitions of banks and thrifts.Social implicationsCredit union members are better served after a credit union acquires a bank.Originality/valueNo previous study has explored the effects of credit unions acquiring banks and thrifts, which began in 2012.
Journal of Financial Economic Policy – Emerald Publishing
Published: Aug 6, 2019
Keywords: Banks; Financial economics; Acquisitions; G20; G21
Read and print from thousands of top scholarly journals.
Already have an account? Log in
Bookmark this article. You can see your Bookmarks on your DeepDyve Library.
To save an article, log in first, or sign up for a DeepDyve account if you don’t already have one.
Copy and paste the desired citation format or use the link below to download a file formatted for EndNote
Access the full text.
Sign up today, get DeepDyve free for 14 days.
All DeepDyve websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.