Factors Affecting the Performance of Credit Unions

Keywords: Profit; Profitability; Results; Finance; Performance; Financials.

Abstract

Savings and credit cooperatives (SACCOs) contribute significantly to the economy in Ecuador and must combine financial objectives with the principles and values of cooperativism and the social and solidarity economy. In this context, the objective of this article is to identify the factors that affect the profitability of credit unions from a theoretical, professional, academic, and managerial perspective in Ecuador. For the development of the research, a descriptive cross-sectional qualitative approach applied to a sample of credit unions was used. Data sources included bibliographic resources, interviews with managers, financial experts, and academics. The main results show the internal and external factors that influence performance. The internal factors are determined by delinquency, asset quality, operating efficiency, and capital structure. While in the external factors, it was determined that the tax burden and interest rates affect performance, and that the GDP does not affect profitability. The conclusion is that the profitability of the cooperative sector is affected by internal and external factors, and the perspective adopted on profitability also affects the definition of these factors.

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Author Biographies

Neusa Cecilia Cueva Jiménez, Universidad Nacional de Loja - Ecuador

Ingeniera en contabilidad y auditoría, Magister en Contabilidad y Finanzas por la Universidad Nacional de Loja. Magister en Educación a Distancia. Docente-Investigador en la Universidad Nacional de Loja.

Lenin Ernesto Peláez Moreno, Universidad Nacional de Loja - Ecuador

Economista por la Universidad Técnica Particular de Loja. Magister en Gestión Pública por el Instituto de Altos Estudios. Docente-Investigador de la Carrera de Finanzas de la Universidad Nacional de Loja.

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Published
2022-12-07
How to Cite
Cueva Jiménez, N. C., & Peláez Moreno, L. E. (2022). Factors Affecting the Performance of Credit Unions. Religación. Revista De Ciencias Sociales Y Humanidades, 7(34), e210994. https://doi.org/10.46652/rgn.v7i34.994