Credit Unions Financial Management and the Financial System of Ecuador during the period 2015 – 2020
- Carlos Gabriel Parrales Chóez Universidad de Guayaquil (Ecuador) https://orcid.org/0000-0001-7006-4614
- Fernando José Zambrano Farías Universidad Internacional del Ecuador UIDE (Ecuador) https://orcid.org/0000-0001-6384-3353
- María del Carmen Valls Martínez Universidad de Almería (España) https://orcid.org/0000-0002-9250-717X
Abstract
Credit unions are key institutions in a country's financial system, both for the economic development of its region and for preventing the financial exclusion of a part of the most disadvantaged population. This paper analyzes the financial management of the largest credit unions in Ecuador in comparison with banks. The results show how credit cooperatives are obtaining better values of profitability and efficiency, both economic and financial, than banks; they are experiencing a more remarkable growth; they show less dependence on borrowed resources; they have a lower percentage of non-productive assets; they have lower default rates and a better coverage of the problematic portfolio. All of this represents a positive structural change in Ecuador's financial system.
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