Is There a Credit Union Difference? Comparing Canadian Credit Union and Bank Branch Locations

Auteurs-es

  • John Maiorano University of Toronto
  • Laurie Mook Arizona State University
  • Jack Quarter University of Toronto

DOI :

https://doi.org/10.22230/cjnser.2016v7n2a236

Mots-clés :

Credit Unions, Canada, niche, location, branch

Résumé

This study of credit union and bank branch locations and neighbourhoods in Canada seeks to discover if there is a distinct credit union niche. The study builds on an earlier paper of credit unions and banks in the US which found that credit unions in Wisconsin, Arizona and New Hampshire were more likely to be located in lower-income areas than bank branches (Mook, Maiorano & Quarter, 2015). In Canada, we find that credit union branches are over-represented in rural areas, and under-represented in large population centres relative to bank branches. Additionally, credit unions are overrepresented in middle income areas and underrepresented in high income areas compared to bank branches both at the national level and in all provinces where differences are statistically significant. Another significant finding is that while both credit unions and banks cater to marginalized communities, the type of marginalized communities they cater to distinguishes them. Making use of the Canadian Marginalization Index, we find credit union branches in Canada to be overrepresented in communities marginalized along the dimensions of Material Deprivation and Dependency, while bank branches are overrepresented in communities marginalized along the dimension of Residential Instability and Ethnic Concentration.

Téléchargements

Les données relatives au téléchargement ne sont pas encore disponibles.

Bibliographies de l'auteur-e

John Maiorano, University of Toronto

John Maiorano is a Ph.D. Candidate at the University of Toronto in Adult Education and Community Development at the Ontario Institute for Studies in Education, Collaborative in Environmental Studies with the School of the Environment.

Laurie Mook, Arizona State University

Dr. Laurie Mook is Associate Professor in the Nonprofit Leadership and Management program in the School of Community Resources and Development, and research associate at the Lodestar Center for Nonprofit Innovation and Philanthropy, at Arizona State University.

Jack Quarter, University of Toronto

Dr. Jack Quarter is a professor in the Department of Leadership, Higher and Adult Education at the Ontario Institute for Studies in Education.

Références

Bank of Canada. (2014). Financial System Review. June 2014. Retrieved from: http://www.bankofcanada.ca/2014/06/fsr-june-201

Bank of Montreal. (2016a). Everyday banking essentials. Retrieved from http://www.bmo.com/newstart/pdfs/Everyday_Banking_Essentials_ENG.p

Bank of Montreal. (2016b). Immigrant Banking Services. https://www.bmo.com/asia/immigration_banking_services.ht

Brennan, M., McGregor, B., & Buckland, J. (2011). The changing structure of inner-city retail banking: examining bank branch and payday loan outlet locations in Winnipeg, 1980-2009. Canadian Journal of Urban Research, 20(1), 1-3

Brown, S. (2015 Mar). Serving the cultural mosaic: Attracting an immigrant membership is a win-win deal, Enterprise, Retrieved from http://enterprise-magazine.com/features/serving-the-cultural-mosai

Bank of Nova Scotia (BNS). (2016). Creating the life you want in Canada. Retrieved from http://www.scotiabank.com/ca/en/0,,4355,00.ht

Canadian Credit Union Association (CCUA). (2016 July 4). CCUA congratulates UNI Financial Cooperation on becoming first Canadian credit union to obtain a federal charter, Retrieved from https://www.ccua.com/media/2016_07_04_UNI_financial_cooperation_obtain_a_federal_chart

Canadian Imperial Bank of Commerce (CIBC). (2016a). CIBC Quick facts. Retrieved from https://www.cibc.com/ca/inside-cibc/quick-facts.ht

Canadian Imperial Bank of Commerce (CIBC). (2016b). New to Canada? Meet the bank that wants to meet you. Retrieved from https://www.cibc.com/ca/advice-centre/newcomers-to-canada.ht

Canadian Credit Union Association. (2015a). System results: First quarter 2015. Retrieved from https://www.ccua.com/~/media/Public/About/facts_and_figures/documents/Quarterly%20National%20System%20Results/2015_05_27_1Q15_system_results.p

Canadian Credit Union Association. (2015b). System results: Largest 100 credit unions/caisses populaires. Retrieved from: https://www.ccua.com/~/media/Public/About/facts_and_figures/documents/Largest%20100%20Credit%20Unions/2015_09_22_top100_2Q15.p

Cheung, B., Christian, J., La Rose, M. (2013). Financial Services Needs of Immigrant Communities in Canada and the United States. Filene Research Institute

Deller, S., & Sundaram-Stuckel, R. (2012). Spatial patterns in the location decisions of US credit unions. The Annals of Regional Science, 49(2), 417-445. doi:10.1007/s00168-011-0457

Desjardins. (2015). Financial statement, first quarter 2015. Retrieved from http://www.desjardins.com/ressources/pdf/2015051301-e.pdf?resVer=14315317280

Desjardins. (2016a). Organizational chart. Retrieved from http://www.desjardins.com/ca/about-us/desjardins/governance-democracy/structure/group-organization-chart/index.j

Desjardins (2016b). Quick facts about Desjardins. Retrieved from http://www.desjardins.com/ca/about-us/desjardins/who-we-are/quick-facts/index.jsp?navigMW=m

Eaton, C., & Lipsey R.G. (1982) An economic theory of central places. Econ J 92(March):56–72

European Association of Co-operative Banks. (2013). Latest key figures. Retrieved from http://www.eacb.coop/en/cooperative_banks/key_figures/last_key_figures.ht

Feinberg, RM. (2008) Explaining the credit union entry decision, and implications for performance. Review Ind Organ 33:81–91

Flaherty, J. (2010). Budget 2010: Leading the Way on Jobs and Growth. Retrieved from: http://www.budget.gc.ca/2010/pdf/budget-planbudgetaire-eng.p

Flaherty, J. (2013, March 21). Jobs, Growth and Long-Term Prosperity: Economic Action Plan 2013. Retrieved from http://www.budget.gc.ca/2013/doc/plan/chap3-2-eng.html#a92-Phasing-Out-the-Additional-Deduction-for-Credit-Unio

Graves, S. (2003). Landscapes of predation, landscapes of neglect: A location analysis of payday lenders and banks. The Professional Geographer, 55(3) 2003, pages 303–317

International Monetary Fund (IMF). (2014). Financial Sector Assessment Program: Intensity and Effectiveness of Federal Bank Supervision in Canada - Technical Note. Washington, D.

Ketilson, L., and Brown, K. (2011). Models for Effective Credit Union Governance: Maintaining Community Connections following a Merger. Retrieved 20 May 2016 from http://usaskstudies.coop/documents/occasional-papers/Models%20for%20Effective%20CU%20Governance%20pdf.pd

King, L.J. (1984). Central place theory. SAGE Publications, London

Macpherson, I. (1979). Each for all: A history of the co-operative movement in English Canada: 1900-1945. Toronto, Ontario, Canada: Macmilla

Macpherson, I. (1999). Hands around the globe: A history of the international credit union movement and the role and development of World Council of Credit Unions. Victoria, British Columbia, Canada: Horsdal and Schubar

Macpherson, I. (2012). Historic changes in the Canadian credit union movement. In L. Mook, J. Quarter, & S. Ryan (Eds.), Businesses with a difference: Balancing the social and economic (pp. 19-39). Toronto, Ontario, Canada: University of Toronto Press

Matheson, F., Dunn, J., Smith, K., Moineddin, R., Glazier, R. (2012a). Canadian Marginalization Index (CAN-Marg) [Data file]. http://www.crunch.mcmaster.ca/canadian-marginalization-ind

Matheson, F., Dunn, J., Smith, K., Moineddin, R., Glazier, R. (2012b). Canadian Marginalization Index: User Guide Version 1.0. Centre for Research on Inner City Health. Retrieved from: http://www.crunch.mcmaster.ca/canadian-marginalization-ind

McNish, J. (2011). Desjardins quiet revolution. Globe and Mail, Feb. 24. Retrieved from http://www.theglobeandmail.com/report-on-business/rob-magazine/desjardins-quiet-revolution/article597309/?page=a

Mook, L., Hann, J., & Quarter, J. (2012). Understanding the rural tilt among financial co-operatives in Canada. Canadian Journal of Nonprofit and Social Economy Research, 3(1), 42-58. http://anserj.ca/index.php/cjnser/article/download/107/6

Mook, L., Maiorano, J., & Quarter, J. (2015). Credit Unions: Market Niche or Market Accommodation? Nonprofit and Voluntary Sector Quarterly, 44(4), 814-831. doi:10.1177/08997640145381

Morneau, W.F. (2016, March 22). Growing the Middle Class. Retrieved from http://www.budget.gc.ca/2016/docs/plan/ch8-en.htm

Pierce, N. (2011). Credit unions. In J. R. Whitman (Ed.), The curriculum on cooperatives. Retrieved from http://cooperative-curriculum.wikispaces.co

Prospectus (Federal Credit Unions) Regulations. (2012), Retrieved from Minister of Justice website: http://laws-lois.justice.gc.ca/eng/regulations/SOR-2012-265/FullText.ht

Quarter, J., Mook, L., & Armstrong, A. (in press). Understanding the social economy: A Canadian perspective. (2nd Ed.). Toronto: University of Toronto Press

Reschovsky, A. (2010, September 5). Banks Take Aim at Credit Unions Tax Exempt Status. The CAP Times. Retrieved from: http://host.madison.com/ct/business/banks-take-aim-at-credit-unions-tax-exempt-status/article_37e495d6-b84c-11df-a86c-001cc4c002e0.ht

Royal Bank of Canada (RBC). (2016). Newcomers to Canada. Retrieved from: http://www.rbc.com/newcomer

Shecter, B. (2014, August 23). Credit unions staying under the radar in Canada’s patchwork regulatory system. Financial Post. Retrieved from: http://business.financialpost.com/news/fp-street/credit-unions-staying-under-the-radar-in-canadas-patchwork-regulatory-syst

Statistics Canada. (2011). Census Dictionary: Census year 2011. Ottawa: Minister of Industry, 2012. Catalogue no. 98-301

Statistics Canada. (2012). Population growth in Canada: From 1851 to 2061: Population and dwelling counts, 2011 Census. Ottawa: Minister of Industry, 2012. Catalogue no. 98-310-X20110

Statistics Canada. (2013a). Postal Code Conversion File (PCCF), Reference Guide: June 2013 postal codes. Ottawa: Industry Canada, 2013. Catalogue no. 92-154

Statistics Canada. (2013b). Postal Code Conversion File Version 6A1 [Data file]. Retrieved from: http://data.library.utoronto.ca/content/postal-code-conversion-fi

Statistics Canada. (2014). 2011 National Household Survey: Data Tables Selected Demographic, Sociocultural, Education and Labour Characteristics (322), Sex (3) and Income Status in 2010 (6) for the Population in Private Households of Canada, Provinces, Census Metropolitan Areas and Census Agglomerations, 2011 National Household Survey. [Catalogue no. 99-001-X2011001]. Retrieved May 25, 2014 from Statistics Canada: http://www12.statcan.gc.ca/nhs-enm/2011/dp-pd/dt-td/Rp-eng.cfm?LANG=E&APATH=3&DETAIL=0&DIM=0&FL=A&FREE=0&GC=0&GID=0&GK=0&GRP=1&PID=106715&PRID=0&PTYPE=105277&S=0&SHOWALL=0&SUB=0&Temporal=2013&THEME=98&VID=0&VNAMEE=&VNAME

Toronto-Dominion Bank (TD). (2016). Get your New to Canada Banking Package. Retrieved from: https://www.tdcanadatrust.com/planning/life-events/new-to-canada/index.j

Trichur, R. (2007, Dec 28). Banking on immigrants, Toronto Star. Retrieved from http://www.thestar.com/business/2007/12/28/banking_on_immigrants.ht

Ward, A. M., & McKillop, D. G. (2005). An investigation into the link between UK credit union characteristics, location and their success. Annals of Public and Cooperative Economics. 76(3), 461-489

Téléchargements

Publié-e

2017-01-25

Numéro

Rubrique

Articles