Prudence and financial self-regulation in credit unions in Northern Ireland

Forker, John and Ward, Anne Marie (2012) Prudence and financial self-regulation in credit unions in Northern Ireland. The British Accounting Review, 44 (4). pp. 221-234. ISSN 0890-8389

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Credit unions in Northern Ireland are subject to a unique combination of statutory oversight and self-regulation. This paper investigates the association between prudence and the monitoring of financial ratios by credit union trade associations. We find that compliance with the mandated level of capital reserves is uniformly high, regardless of the existence or extent of self-regulation. However, after controlling for cross-sectional differences in profitability, age, size, growth and common bond type a positive association exists between self-regulation and financial ratios measuring prudence and loan book quality. These findings have policy implications for the regulation of credit unions in Northern Ireland and elsewhere regarding potential regulatory cost savings from reliance on self-regulation provided by trade associations

Item Type: Article
Keywords: Credit unions; Financial ratios; Loan book quality; Prudence; Self-regulation
Schools and Departments: School of Business, Management and Economics > Business and Management
Subjects: H Social Sciences
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Depositing User: Users 7386 not found.
Date Deposited: 22 Jan 2013 14:07
Last Modified: 08 Mar 2017 04:48

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