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 journalArticlepeer-review

34 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.
Original languageEnglish
Pages (from-to)67-76
Number of pages10
JournalJournal of Banking & Finance
Volume34
Issue number1
DOIs
Publication statusPublished - Jan 2010

ASJC Scopus subject areas

  • Economics and Econometrics
  • Finance

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