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

Authors

Lijuan Sun, The University of Texas Rio Grande Valley
Xu Sun
Monika K. Rabarison, The University of Texas Rio Grande ValleyFollow

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

Recommended Citation

Sun, L., Sun, X. and Rabarison, M.K., 2018. Performance efficiency evaluation of US Credit Unions around the 2009 global recession: a data envelopment analysis approach. The Journal of Business Inquiry, 18(2), pp.120-142.