IMPACT OF DELINQUENCY ON THE LIQUIDITY OF SAVINGS AND CREDIT COOPERATIVES SEGMENT 2

Abstract

This research aims to analyze the impact of the delinquency rate on the liquidity of Savings and Credit Cooperatives (COAC) in segment 2 in Ecuador, which is made up of 58 financial institutions. To do so, a quantitative methodology was used, based on the analysis of financial data extracted from reports published by the SEPS (Spanish Securities and Exchange Commission). During 2024, cooperatives in this segment recorded a total portfolio of US$4.469 billion, of which US$127 million corresponds to non-performing loans. The predominant financial product is microcredit, representing 55,00% of the total portfolio and aimed at meeting members' basic needs and promoting productive activities. Despite having internal manuals and strategies suggested by SEPS for recovery management, many of these have not been implemented, hindering the effective recovery of securities. This is mainly due to the economic crisis resulting from electricity rationing, which increased the unemployment rate and significantly affected payment capacity, raising the default rate to 10,15%. On the other hand, the liquidity level is sufficient to meet short-term obligations, but the high default rate negatively impacts the credit rating, restricting the placement of new loans and refinancing. As a result, cooperatives cannot use their resources to generate new financial products, reducing the income and profitability of financial institutions in segment 2.