Productivity and its Parameters – an Empirical Analysis of Credit Cooperatives

In times of politically motivated low interest rates, many Credit Cooperatives are under pressure to increase productivity. This seems to be the only way in order to continue their business model in a profitable manner. The present study provides empirical results of the different parameters which have influenced the Cost-Income- Ratio in recent years. This analysis is based on a panel data set of approximately 1100 Credit Cooperatives between 1993 and 2012. The National Association of German Cooperative Banks (BVR) raised this data annually by its member institutions.