Credit risk analysis of Ecuadorian cooperatives in segment 1, period 2021-2023

Abstract

This paper analyzes the importance of identifying the internal factors that affect credit risk in savings and credit cooperatives in segments 1 and 2, due to their growing relevance in the Ecuadorian financial system during 2021-2023. Therefore, a quantitative research method was applied along with a thorough literature review, which justifies the use of econometric models based on the analyzed data from 49 entities, statistically calculated using Stata software. This allowed for the identification of statistically significant variables as internal factors that explain credit risk, approximated by the default rate, such as ROA, portfolio coverage, microeconomic efficiency, and the net capitalization ratio. It concludes that the proper management of internal financial indicators is key to mitigating credit risk and promoting financial sustainability. Additionally, it provides a foundation for various entities seeking to belong to the analyzed segment.