Credit Unions’ Rising Share of Small Business Loans

Authors

  • David A. Walker Georgetown University

Keywords:

Accounting, Finance, Loans, Markets, Credit Union's

Abstract

Credit unions are increasing their share of small business loans. Over the period of 2010-2014, business loans from credit unions increased by 39.2 percent while their assets increased by 22.7 percent. Community banks reduced their business lending by 5.6 percent over the same period. A mixed cross- section/time-series (panel) model is developed to identify significant determinants of credit union business loans. Business loans as a proportion of assets are a function of asset percentages of liquidity, mortgage loans, and consumer loans, as well as the ratio of total loans to share deposits and a time trend. Average deposits per competitor has a positive, statistically significant coefficient. In markets where their competitors are larger, credit unions are supplying more credit to business.

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Published

2019-03-13

How to Cite

Walker, D. A. (2019). Credit Unions’ Rising Share of Small Business Loans. Journal of Accounting and Finance, 16(6). Retrieved from https://articlegateway.com/index.php/JAF/article/view/1057

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Section

Articles