MADISON, Wis. - A new study released by the Filene Research Institute finds credit unions could use several strategies already used by banks to meet their capital requirements. In particular, the study - Capital Instruments for Credit Unions: Precedents, Issuance and Implementation finds - cites the use of trust preferred securities and pooling mechanisms. The report by economist James A. Wilcox of the Haas School of Business, University of California, Berkely, concludes that use of subordinated debt is feasible for many credit unions. "For regulators, subordinated debt would impose an element of direct market discipline on the industry," they said. For information on ordering copies of Capital Instruments for Credit Unions: Precedents, Issuance and Implmentation, contact the Filene Research Institute at (608) 231-8550 or their Web site, www.filene.org.
This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers, click the "Reprints" link at the top of any article.
From the May-07, 2003 issue of Credit Union Times Magazine • Subscribe!
CUs' Capital Needs Could Benefit From Use of Bank Strategies
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