Jan 01 1999

The Effect of Credit Unions on Market Rates for Unsecured Consumer Loans

This study examines the pricing of personal, non-credit card loan rates in up to 90 small U.S. markets. Credit unions in each of these markets are small competitors, with total credit union share of market ranging from 0% to 31% of deposits, with an average share of 9%. Our research focused on the pricing impacts of 1) market shares of dominant banks/thrifts and 2) the market share and potential for expansion of credit unions.