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Study Claims that CUs Lack Incentive to Control Expenses "Credit News 24"

Credit unions are less efficient than other depository institutions, according to research from Moebs $ervices.

The study notes that banks and thrifts have an incentive to keep expenses low to pay for taxes, while credit unions, who are not taxed, lack a similar incentive to keep expenses low.

It should also be noted that credit union industry is overwhelmingly comprised of small institutions that are not able to take advantage of economies of scale.

The following chart compares the median non-interest expenses to assets for banks, thrifts, and credit unions.





Title : Study Claims that CUs Lack Incentive to Control Expenses "Credit News 24"
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