Financial and economic performance of major Brazilian credit cooperatives

Abstract

The credit union's main functions are the provision of individual financial loans based on collective savings, reaching up to provide full banking services, with expansion of its social function. Cooperatives are an alternative to supply a credit demand in the market, because a third of the municipalities have no bank branches. Although the participation of cooperatives in credit operations is still small compared to the Brazilian national banking system, its continued growth demonstrates the importance of this sector. In this sense, the analysis of the performance of these cooperatives becomes relevant to the extent that incentives to industry expansion differ from other financial institutions. In this context, this study aimed to analyze which the financial and economic performance of Brazil's largest credit unions. This performance analysis was performed using the indicators proposed by the CAMEL model, then the data envelopment analysis (DEA). It can be seen that there is a positive relationship between the use of variables in the model and the measurement of financial performance of credit unions. Moreover, according to the results, it can be observed that Uniprime Northern Paraná, Sicoob Cocred and Sicredi North RS/SC were cooperatives that stood out as efficient.

El rendimiento financiero explicado a través de los principios cooperativos. Un estudio en las cooperativas de ahorro y crédito del Ecuador

“…Al igual que la suficiencia patrimonial el PE y el AI afectan de forma significativa en los resultados de las cooperativas. Se debe considerar que la gestión de créditos representa el compromiso de las cooperativas con los intereses de los asociados y también coincide con la susceptibilidad al principio cooperativo de compartir el riesgo y la responsabilidad mutua (Da Silva et. al., 2017).…”

Drivers of credit union penetration: An international analysis

“…SACCOs with less concentrated revenue streams are characterized by higher volatility in returns. Da Silva et al (2017) analyze the financial and economic performance of credit unions of major Brazilian credit cooperatives and observe that Uniprime Northern Paraná, Sicoob Cocred, and Sicredi North RS/SC as outstanding cooperatives in terms of efficiency.…”

“…Credit unions 1 are not-for-profit microfinance institutions (MFIs) owned and controlled by their members established to promote savings and offer credit to "members at a fair and reasonable interest rate" (Henock, 2019). The primary function of credit unions is the delivery of individual financial loans based on collective savings (Da Silva, Leite, Guse, & Gollo, 2017). The absence of credit unions will result in many people having no access to consumer credit services, mortgage loans, agricultural credit, and mortgages (McKee, Kagan, & Ghosh, 2019).…”

Analisis Kelayakan Pemberian Kredit Nasabah Koperasi Menggunakan Algoritma C4.5

“…Tuntutan kebutuhan hidup memaksa segenap orang untuk berusaha sekuat tenaga dalam memenuhi kebutuhan ekonomi rumah tangganya, berbagai jalan ditempuh mulai dari bekerja lembur dikantor untuk mendapatkan penghasilan tambahan hingga berupaya untuk berusaha secara mandiri maupun berkelompok, akan tetapi kendala yang sering terjadi dalam memulai usaha adalah minimnya modal kerja, sedikit sekali orang yang dapat berusaha dan menjadi tumbuh serta berkembang tanpa pembiayaan dari pihak lain [2], bagi mereka yang tidak memiliki modal alternative nya adalah dengan mencari pinjaman dari berbagai sumber salah satunya adalah koperasi, koperasi sebagai alternative pemberi pinjaman kredit bagi masyarakat kecil [3].…”