Irish credit unions: Investigating performance determinants and the opportunity cost of regulatory compliance

J. Colin Glass, Donal G. McKillop, Syamarlah Rasaratnam

    Research output: Contribution to journalArticle

    23 Citations (Scopus)

    Abstract

    The study investigates how producer-specific environmental factors influence the performance of Irish credit unions. The empirical analysis uses a two-stage approach. The first stage measures efficiency by a data envelopment analysis (DEA) estimator, which explicitly incorporates the production of undesirable outputs such as bad loans in the modelling, and the second stage uses truncated regression to infer how various factors influence the (bias-corrected) estimated efficiency. A key finding of the analysis is that 68% of Irish credit unions do not incur an extra opportunity cost in meeting regulatory guidance on bad debt.
    LanguageEnglish
    Pages67-76
    JournalJournal of Banking and Finance
    Volume34
    Issue number1
    DOIs
    Publication statusPublished - Jan 2010

    Fingerprint

    Regulatory compliance
    Credit unions
    Opportunity cost
    Data envelopment analysis
    Modeling
    Efficiency measures
    Loans
    Estimator
    Environmental factors
    Debt
    Undesirable outputs
    Influence factors
    Truncated regression
    Guidance
    Empirical analysis

    Keywords

    • Credit unions
    • efficiency
    • regulatory compliance.

    Cite this

    Glass, J. Colin ; McKillop, Donal G. ; Rasaratnam, Syamarlah. / Irish credit unions: Investigating performance determinants and the opportunity cost of regulatory compliance. In: Journal of Banking and Finance. 2010 ; Vol. 34, No. 1. pp. 67-76.
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    Irish credit unions: Investigating performance determinants and the opportunity cost of regulatory compliance. / Glass, J. Colin; McKillop, Donal G.; Rasaratnam, Syamarlah.

    In: Journal of Banking and Finance, Vol. 34, No. 1, 01.2010, p. 67-76.

    Research output: Contribution to journalArticle

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