This paper presents a conceptual framework for explaining credit union (CU) loan delinquency and profitability in developing countries. It also offers an empirical estimation for a unique sample of Latin American CUs.

The Panzar-Rosse model is a widely applied method to assess competitive conduct. In particular, it has been extensively used to analyze the competitive climate in the banking industry. To correct for differences in firm size, many empirical papers estimate a Panzar-Rosse revenue function with...