An extension to Taylor's model of Credit Unions

In a series of papers, Taylor (1971, 1977, 1979) has proposed a theoretical model of Credit Union behavior emphasizing their nonprofit and cooperative nature. Taylor (1979) represents the model in its most developed form. In this note his work is surveyed and a modification is proposed, namely the incorporation of current period endogenous reserve accumulation, which is very important in practice and which, it is suggested, fills a significant gap and makes his model more satisfactory as a representation of credit union behaviour in periods of asset growth or decline.