Performance Efficiency Evaluation of U.S. Credit Unions Around the 2009 Global Recession: A Data Envelopment Analysis Approach


  • Lijuan Sun
  • Xu Sun
  • Monika K. Rabarison


Credit Union, Data Envelopment Analysis, Recession, Performance Efficiency


This paper examines the impact of the latest economic recession on performance efficiency of U.S. credit unions using Data Envelopment Analysis (DEA), a non-parametric method. We find that larger credit unions and credit unions with lower loss loan provisions tend to have higher efficiency. Our results reveal that, compared to the pre-recession period, the recession and the post-recession periods affected the efficiency of Federal Credit Unions (FCUs) and Federally Insured State-Chartered Credit Unions (FISCUs) differently. FISCUs have significantly higher efficiency than FCUs before the recession but FCUs exhibit higher efficiency during the recession and post-recession periods.