The title of my doctoral project, “The Yin and Yang of the Financial Services Industry,” was intentional as the project contrasted different types of performance variation, the contributing variables and the charter type of the financial institution. The work for my doctorate of business administration from California Southern University, which I finished over the summer, showed that the performance of credit unions and banks is correlated with different parts of the economic cycle, and complement one another.

During downturns, banks become more conservative. That is, the interests of their customers, who may be struggling financially, come into direct conflict with the interests of their shareholders, who demand that the bank reduce its risk profile in the short term. Credit unions, in contrast, operate more strategically and are more likely to work with members to grant as well as work out loans in tough times.

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