Evidence of Changes in the Operating Characteristics of Occupational Credit Unions

by David L. Mullis and Theodor Kohers

In recent years, two distinct forces have been at work to change the nature and structure of credit unions. On the one hand, the implementation of FIRREA has resulted in a trend of mergers and acquisitions for banks and thrifts. Increased investment powers authorized by deregulation, lower competitive barriers to entry, and increased thrift-bank competition for deposits and loans have changed the face of the "competition" for credit unions’ management. On the other hand, American business has been attempting to downsize in an effort to become more cost efficient and competitive in an increasingly world-wide market. While this force appears to represent the general business environment, it is particularly relevant for occupational credit unions. The purpose of this paper is to examine structural changes which occurred in occupational credit unions as shown by operating characteristics for the years 1990 and 1994.

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