Date of Award

2016

Publisher

North Dakota State University

Document Type

Thesis

Degree Awarded

Master of Science (MS)

Program

Agribusiness and Applied Economics

Department

Agribusiness and Applied Economics

College

Agriculture, Food Systems and Natural Resources

Faculty Advisor

McKee, Gregory

Description

This study examined the relationship between abnormally rapid loan growth and its impacts on U.S. credit union performance during 2007 – 2013. Three hypotheses were developed to test whether and how abnormal loan growth affects default risk, profitability, and solvency in credit unions. This study found that 1) rapidly loaning credit unions had larger average loan loss, smaller average profitability and solvency than normally loaning credit unions; 2) market concentration exhibited a negative and significant impact on default risk, profitability, and solvency; and 3) A size of credit union also exhibited a negative and significant impact on profitability and solvency. These results suggest that supervisors and boards of directors of credit unions should consider rapid loan growth as an early warning sign of risk.

Rights

NDSU policy 190.6.2

Rights Link

https://www.ndsu.edu/fileadmin/policy/190.pdf

Handle Identifier

https://hdl.handle.net/10365/28147

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