Finance Faculty Publications and Presentations

Performance Efficiency Evaluation of U.S. Credit Unions Around the 2009 Global Recession: A Data Envelopment Analysis Approach

Document Type

Article

Publication Date

1-30-2019

Abstract

This paper examines the impact of the latest economic recession on performance efficiency of U.S. credit unions using Data Envelopment Analysis (DEA), a non-parametric method. We find that larger credit unions and credit unions with lower loss loan provisions tend to have higher efficiency. Our results reveal that, compared to the pre-recession period, the recession and the post-recession periods affected the efficiency of Federal Credit Unions (FCUs) and Federally Insured State-Chartered Credit Unions (FISCUs) differently. FISCUs have significantly higher efficiency than FCUs before the recession but FCUs exhibit higher efficiency during the recession and post-recession periods.

Publication Title

The Journal of Business Inquiry

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