Jan 01 1999

Consolidation of the Financial Services Industry: Implications for Credit Unions


The effect of mega-banks on credit unions has become an increasingly compelling issue as financial services consolidation continues to accelerate. To address this issue, the Filene Research Institute; the Center for Credit Union Research, University of Wisconsin-Madison; Graduate School of Business, Stanford University; and Stanford Federal Credit Union jointly sponsored a colloquium, held at Stanford University in March 1999. This monograph contains two key papers that were presented at the colloquium, as well as selected portions of the discussion of participants. Those participants included a mixture of credit union CEOs and academics.

Paper 1: Financial Consolidation: Implications for Small Financial Services Firms and Their Customers. Authors: Allen N. Berger, Senior Economist at the Board of Governors of the Federal Reserve System; Rebecca S. Demsetz, Research Officer of the Federal Reserve Bank of New York; and Philip E. Strahan, Vice President-Research and Market Analysis Group, Federal Reserve Bank of New York.

Paper 2: Consolidation of the Financial Services in Europe: The Response of German and French Credit Unions. Author: Timothy Guinnane, Professor of Economics, Yale University.

Report Number 53