TY - JOUR

T1 - Regulatory Change and Capital Adjustment of US Credit Unions

AU - Goddard, J.A.

AU - Goddard, J.

AU - McKillop, D.

AU - Wilson, J.O.

N1 - The final publication is available at Springer via http://dx.doi.org/10.1007/s10693-015-0217-y

PY - 2015/4/26

Y1 - 2015/4/26

N2 - We investigate the determinants of US credit union capital-to-assets ratios, before and after the implementation of the current capital adequacy regulatory framework in 2000. Capitalization varies pro-cyclically, and until the financial crisis credit unions classified as adequately capitalized or below followed a faster adjustment path than well capitalized credit unions. This pattern was reversed, however, in the aftermath of the crisis. The introduction of the PCA regulatory regime achieved a reduction in the proportion of credit unions classified as adequately capitalized or below that continued until the onset of the crisis. Since the crisis, the speed of recovery of credit unions in this category following an adverse capitalization shock was sharply reduced.

AB - We investigate the determinants of US credit union capital-to-assets ratios, before and after the implementation of the current capital adequacy regulatory framework in 2000. Capitalization varies pro-cyclically, and until the financial crisis credit unions classified as adequately capitalized or below followed a faster adjustment path than well capitalized credit unions. This pattern was reversed, however, in the aftermath of the crisis. The introduction of the PCA regulatory regime achieved a reduction in the proportion of credit unions classified as adequately capitalized or below that continued until the onset of the crisis. Since the crisis, the speed of recovery of credit unions in this category following an adverse capitalization shock was sharply reduced.

U2 - 10.1007/s10693-015-0217-y

DO - 10.1007/s10693-015-0217-y

M3 - Article

JO - Journal of Financial Services Research

JF - Journal of Financial Services Research

SN - 0920-8550

ER -