단위신협의 부실위험에 관한 연구

A Study on the Default Risk of Korean Local Credit Unions

Using financial characteristics data of 27,366 local credit unions from 2005 to 2011 over the last 7 years, we analyze the change of default risk of Korean credit unions around the 2008 Global Economic Crisis. We find that the default risk of credit unions in Korea is continuously increasing and financial characteristics such as BIS capital ratio, allowance for bad debts, liquidity and size are significant besides common bond and locations. These results mean that the deposit rush just after Global Crisis may not result from the uniqueness and/or soundness of Korean credit unions, but from tax exemption and/or other benefits in lower interest rate for credit union memberships.