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Enhancing The Performance of Credit Unions: The Evolution of a Methodology

Published online by Cambridge University Press:  17 August 2016

Harold O. Fried
Union College
C.A. Knox Lovell
University of Georgia
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In the United States credit unions are not-for-profit cooperative financial institutions, owned by and operated for the benefit of their members. Being part of a cooperative movement enhances the likelihood that credit unions will share performance-enhancing ideas, for the benefit of weak credit unions and the movement as a whole. In this paper we show how a conventional performance evaluation methodology has evolved into a novel performance enhancement methodology. The evolution of the methodology is the result of cooperations among individual credit union managements, movement officials and the authors. The evolution is illustrated with 1990 data on nearly 9,000 credit unions.



Aux États-Unis les mutuelles de crédit (credit unions) sont des institutions financières sous forme de coopératives sans but lucratif. Leurs membres sont les propriétaires et la gestion se fait à leur profit. Le fait que ces institutions fassent partie d’un mouvement coopératif augmente la probabilité qu’elles partagent entre elles les idées susceptibles d’améliorer leurs performances, au bénéfice non seulement des mutuelles de crédit les plus faibles mais aussi du mouvement coopératif tout entier. Dans cet article nous montrons comment une évaluation conventionnelle de la performance s’est transformé en une nouvelle méthodologie, visant l’amélioration des performances. L’évolution de la méthodologie est le résultat de la coopération entre les gestionnaires des différentes mutuelles de crédit, les responsables du mouvement et les auteurs de l’étude. L’évolution est illustrée avec 1990 données couvrant près de 9000 mutuelles de crédit.

Research Article
Copyright © Université catholique de Louvain, Institut de recherches économiques et sociales 1994 

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We are grateful to the Filene Research Institute and CUNA for financial support, and to Philippe Vanden Eeckaut and Judi Turner for their assistance. This paper is an expanded version of a presentation to the Third European Workshop on Efficiency and Productivity Analysis held at CORE, UCL, October 21-23, 1993.



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