Abstract
We examine the determinants of disappearance through liquidation or acquisition for US credit unions during the period 2001-06. The hazard of disappearance is inversely related to both asset size and profitability, and positively related to liquidity. Growth-constrained credit unions are less attractive acquisition targets, but are more likely to fail. Credit unions with low capitalization and those with relatively small loans portfolios are attractive as acquisition targets. We report unique empirical evidence of a link between technological capability and the hazard of disappearance. The absence of an internet banking capability rendered a credit union more vulnerable to acquisition, but did not affect the probability of failure.
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