Differences in Portuguese Credit Institutions' Lending and Investment Behaviour in a Time of Slump

Abstract

The purpose of this paper is to investigate the influence of the different property rights models of credit institutions (public, private, cooperative or mutual) in their credit policy and investment behaviour and in response to the current crisis and regulatory framework adjustments. Taking Portuguese credit institutions as the object, it concludes that overall banks’ business models are qualitatively identical and their lending and investment behaviours are similar, except for the saver profile of cooperative banks and the deeper focus on loans to customers to the detriment of financial investments of the mutual savings banks. Moreover, the reactions to the crisis were equivalent, except for the state‐owned banks, which presented the most favourable reaction, albeit not deep enough to be significant.

Credit unions, co-operatives, sustainability and accountability in a time of change

“…Wilson and MacLean (2012), researching (mainly) producer co-operatives in Scotland, found evidence that the principles were not of any great importance, noting that as time passes, the principles diminish as a guiding philosophy. Similarly, Cabo and Rebelo (2015) note a gap between what co-operatives do, and what they proclaim. These findings are also supported by Kelly (2014), whose report suggests that co-operatives no longer adhere to the principles, as witnessed by the Co-operative Bank UK’s failure to live up to its members’ expectations.…”

“…However, to what extent are co-operatives still governed and shaped by mutually beneficial principles? Research suggests that co-operatives may no longer be the paragons of virtue they once were (Wilson and MacLean, 2012; Oczkowski et al , 2013; Cabo and Rebelo, 2015).…”

“…Research suggests that co-operatives may no longer be the paragons of virtue they once were (Wilson and MacLean, 2012;Oczkowski et al, 2013;Cabo and Rebelo, 2015).…”

Cooperative banks in need of transition: The influence of Basel III on the business model of German cooperative credit institutions

“…Especially in the banking sector, cooperative banks have been stable institutions in the financial market (Cabo & Rebelo, 2015). Cooperative banks currently have to deal with several topics, such as: new competitors (particularly fintechs), changing customer behavior, as well as globalization and the associated increased competition from foreign direct banks.…”