econintersect .com

FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.

posted on 20 March 2017

Is There Any Evidence New Rules Could Cause Small Banks To Lose Market Share To Credit Unions?

from the Philadelphia Fed

-- this post authored by James Disalvo and Ryan Johnston

One of the main banking stories of the past 25 years has been the dramatic growth of large banks. Less well known is that credit unions have been expanding their market share during this time, too, especially after membership criteria were relaxed in 1998.

While credit unions have been increasing their market share, small banks’ market share has declined. And now, legal changes that took effect in January 2017 expanded credit unions’ capacity to make loans to commercial customers, raising further concern among small banks that they might lose ground to credit unions.

As nonprofit institutions, credit unions are largely tax-exempt, a status that for-profit banks argue constitutes an unfair competitive advantage. Credit unions respond that their member-owned, cooperative structure allows them to provide unique financial services that would otherwise not be available, and hence their tax-exempt status is warranted. Taking no stance in this debate, we instead seek to shed light on some central questions: Do small banks and credit unions serve separate clienteles, or do they compete in the same markets with essentially indistinguishable products? What exactly do the new regulations change? What evidence can we find that regulatory changes for credit unions might take market share away from small banks?

[click on image below to continue reading]


>>>>> Scroll down to view and make comments <<<<<<

Click here for Historical News Post Listing

Make a Comment

Econintersect wants your comments, data and opinion on the articles posted. You can also comment using Facebook directly using he comment block below.

Econintersect Contributors

Print this page or create a PDF file of this page
Print Friendly and PDF

The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.

Keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Middle East / Africa
USA Government

 navigate econintersect .com


Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day


Asia / Pacific
Middle East / Africa
USA Government

RSS Feeds / Social Media

Combined Econintersect Feed

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution



  Top Economics Site Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2018 Econintersect LLC - all rights reserved