Working Papers in Responsible Banking & Finance Regulatory Change and Capital Adjustment of Cooperative Financial Institutions

نویسندگان

  • John Goddard
  • Donal McKillop
چکیده

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 credit unions classified as adequately capitalized or below followed a faster adjustment path than well capitalized credit unions. Credit unions managed their capital more actively following the change in regulation. During the recent financial crisis, large credit unions experienced a smaller reduction in capitalization, on average, than small credit unions. The z-score risk measure was a more reliable predictor of survival or nonsurvival during the crisis than several other financialhealth indicators. WP No 12-003 4th Quarter 2012 Regulatory Change and Capital Adjustment of Cooperative Financial

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تاریخ انتشار 2013