Measuring technical efficiency in Australian credit unions

Worthington, Andrew C. (1999) Measuring technical efficiency in Australian credit unions. The Manchester School, 67(2), pp. 231-248.

View at publisher


Credit unions are small, co-operative, not-for-profit institutions; facts which usually distinguish them from other financial intermediaries. Whilst respecting the unique organisational and institutional features of credit unions, the present study also accepts the need for rigorous efficiency assessment. Using a sample of 233 Australian credit unions the study uses nonparametric techniques to measure efficiency, followed by parametric techniques to attribute variation in efficiency. The results indicate that a large number of credit unions are best-practice efficient, and any efficiencies found appear to flow from X-inefficiencies, rather than from the selection of an inappropriate scale of operations. All other things beings equal, credit unions formed on the basis of a community bond, with a large asset base, and an orientation towards commercial loans, will be relatively more efficient.

Impact and interest:

17 citations in Scopus
4 citations in Web of Science®
Search Google Scholar™

Citation counts are sourced monthly from Scopus and Web of Science® citation databases.

These databases contain citations from different subsets of available publications and different time periods and thus the citation count from each is usually different. Some works are not in either database and no count is displayed. Scopus includes citations from articles published in 1996 onwards, and Web of Science® generally from 1980 onwards.

Citations counts from the Google Scholar™ indexing service can be viewed at the linked Google Scholar™ search.

ID Code: 2680
Item Type: Journal Article
Refereed: Yes
Keywords: Credit unions, data envelopment analysis, technical and scale efficiency
DOI: 10.1111/1467-9957.00144
ISSN: 1463-6786
Subjects: Australian and New Zealand Standard Research Classification > ECONOMICS (140000) > ECONOMETRICS (140300) > Econometrics not elsewhere classified (140399)
Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > BANKING FINANCE AND INVESTMENT (150200) > Financial Institutions (incl. Banking) (150203)
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Copyright Owner: Copyright 1999 Blackwell Publishing
Copyright Statement: The definitive version is available at
Deposited On: 23 Nov 2005 00:00
Last Modified: 05 Jan 2011 13:26

Export: EndNote | Dublin Core | BibTeX

Repository Staff Only: item control page