New York Economic Review


Factors Determining Credit Union Loan Rates in Local Markets

Joanne G. Tokle and Robert J. Tokle

vol. 33, Fall 2002, p. 52-60


This study uses a variant of the structure-performance model, often used in banking studies, to examine the credit union industries in Idaho and Montana. This should be of interest since credit unions have recently been the fastest growing type of depository institution. The used vehicle loan rate is the dependent variable. We found that credit union size, a proxy measure of economies of scale, and bank market share had negative and significant effects on loan rates. Credit union charge-offs, three-firm concentration ratios, higher salaries and a measure of credit union inefficiency led to significantly higher rates.


suggested citation:

Joanne G. Tokle and Robert J. Tokle. "Factors Determining Credit Union Loan Rates in Local Markets." New York Economic Review. vol. 33, Fall 2002, p. 52-60

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