Credit Unions in Great Britain: Recent Trends and Current Prospects

Against the current backdrop of deteriorating economic and financial conditions we consider recent trends and current prospects for credit unions in Great Britain. We note that although credit unions have experienced solid membership and asset growth there are clouds on the horizon. Bad debts and loan arrears are on the rise and may be linked to recent legislative amendments and the increasing use by Government of credit unions as a mechanism to achieve its financial inclusion goals. Whatever the reason, the deterioration in the loan book needs to be quickly addressed, or it will ultimately result in either more government bailouts or a stream of failing credit unions.

Credit Unions: A Theoretical and Empirical Overview

In 2009 there were over 49,330 credit unions across 98 countries with more than 184 million members and approximately $1,354 billion in assets. There is a great diversity within the credit union movement across these countries. This reflects the various economic, historic and cultural contexts within which credit unions operate. This paper traces the evolution of the credit union movement. It examines credit union objectives, and considers issues relating to efficiency, technology adoption, product diversification, merger, failure and demutualization. The regulatory environment within which credit unions operate is also explored under the themes of interest rate regulation, common bond requirements, taxation, deposit insurance and capital regulation. The overview also considers demutualization and the costs and benefits to credit unions of altering their organizational form.

Folklore’s Timeless Past, Ireland’s Present Past, and the Perception of Rural Houses in Early Historic Ireland

This study examines how the archaeology of historic Ireland has been interpreted. Two approaches to the history and archaeology of Ireland are identified. The first, the timeless past, has its roots in a neo-Lamarckian view of the past. This perspective was particularly developed in the work of geographer and ethnographer, Estyn Evans. The second view, associated in particular with a nationalist approach to Ireland’s past, looked to the west of the country where it was believed the culture had been preserved largely unchanged and in its purest form. The continuing impact of these frameworks upon the interpretation of rural settlement in the period 1200– 1700 is examined. It is argued that historians and archaeologists alike have underestimated the quality of buildings.

Unfunded pension liabilities and sponsoring firm credit risk: an international analysis of corporate bond spreads

This paper tests empirically whether pension information derived by corporate pension accounting disclosures is priced in corporate bond spreads. The model represents a hybrid of more traditional accounting ratio-based models of credit risk and structural models of bond spreads initiated by Merton (1974). The model is fitted to 5 years of data from 2002 to 2006 featuring companies from the US and Europe. The paper finds that while unfunded pension liabilities are priced in the overall sample, they are not priced as aggressively as traditional leverage. Furthermore, an extended model shows that the pension–credit risk relation is most evident in the US and Germany, where unfunded pension liabilities are priced more aggressively than traditional forms of leverage. No pension–credit risk relation is found in the other countries sampled, notably the UK, Netherlands and France.

Internet banking and Irish credit unions

The purpose of this paper is to examine IT adoption by Irish credit unions. Using probabilistic models, we explore one aspect of IT, that of internet banking technology, and assess the degree to which characteristics specific to the credit union and to its potential membership base influence adoption. Our
analysis suggests that asset size, organisational structure being a member of the Irish League of Credit Unions and the loan to asset ratio are all important credit union specific drivers of internet banking adoption. We also find that characteristics of the area from where the credit union captures its members are important. Factors such as the percentage of the population that is employed, the proportion of the population in the age bracket 35 to 44, the proportion of the population that have access to broadband and the level of familiarity with a local ATM facility are all identified as influencing the probability of adopting internet banking.

Parish farms and the poor law: a response to unemployment in rural southern England, c.1815-1835

Finding a ‘solution’ for the seemingly intractable problem of unemployment in post-Napoleonic rural England was the Holy Grail for many vestries. Yet, whilst we know much about the depth and consequences of unemployment, parish-driven schemes to set the poor to work have been subjected to remarkably little in the way of systematic study. This paper focuses on one such policy that remains entirely obscure: parish farms, the hiring of pre-existing farms or fields by the parish on which to employ those out of work. Bearing a ‘family resemblance’ to allotments and other land-based attempts to alleviate poverty, parish farms were unique in that they were managed in all regards by the parish and were an employment strategy as opposed to a scheme to supplement the incomes of the poor. Whilst the archive of parish farms is often frustratingly opaque, it is shown that before they were effectively outlawed by the passing of the New Poor Law, many southern parishes, especially in the Weald of Kent and Sussex, adopted the scheme, occasionally with great success.