Evaluating the Performance of Credit Unions

Suthathip Yaisawarng

Many credit union leaders focus primarily on safety and soundness when evaluating the performance of credit unions. Since credit unions are cooperatives owned by their customers, their mission is to serve members, not stockholders. Data envelopment analysis (DEA) evaluates each credit union's performance by comparing it with best practice credit unions in the country. Best practice performers are units that provide more of several services at the same or lower operation expense than any other credit unions.