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Research Article Volume 8 Issue 1
Credit union movement and the national countercyclical effect the union perspective on monetary policy
Pedro Ivo Camacho Alves Salvador
Received: October 25, 2024 | Published: February 25, 2025
Citation: Salvador PICA. Credit union movement and the national countercyclical effect the union perspective on monetary policy. Open Access J Sci. 2025;8(1):41-49. DOI: 10.15406/oajs.2025.08.00243
Abstract
This paper examines the contrasting dynamics between union banks and commercial banks regarding the basic interest rate. Union banks experienced negative effects on financial performance variables in response to increases in the interest rate, a trend that is opposite to that of commercial banks. In a countercyclical manner, union banks showed more robust growth compared to commercial banks, even under a monetary tightening regime. Additionally, we examine the underlying elements of this resilience, highlighting the unique strategies and union values that drive the expansion of these financial institutions, such as shared management and a focus on members rather than on financial results. The findings indicate how union banks are able to thrive even in challenging scenarios, a feature which underscores their relevance within the banking and economic marketplace.
Keywords: union banks, interest rate, performance, countercyclical
©2025 Salvador. This is an open access article distributed under the terms of the, which permits unrestricted use, distribution, and build upon your work non-commercially.