Incidence of credit risk in the liquidity levels of savings and credit mutuals in Ecuador
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Abstract
Loans within a financial institution enable its economic growth and business expansion. However, some clients cannot pay these loans, which puts the organization's monetary stability at risk. Therefore, this paper is oriented to analyze the credit risk and its impact on the liquidity levels of savings and credit mutual societies in Ecuador from 2013-2018. Savings and credit mutual societies carried out a diagnosis of default control and monitoring processes. There is a mixed approach, which begins with an interview with the managers/administrators of the head offices of the entities under study to collect direct information on these processes. On the other hand, the consolidated financial statements published by the "Superintendencia de Bancos" (SB) and the "Superintendencia de Economía Popular y Solidaria" (SEPS) were analyzed, considering the transition period. The results indicate a positive and statistically significant relationship between the variables under study and a weak negative correlation between liquidity and delinquency of the total portfolio. It is possible to prove that credit risk impacts the liquidity levels of the savings and credit mutual societies for housing in Ecuador during this period.
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