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Article
Publication date: 16 November 2022

James Flores-Chia and Benoit Mougenot

This research analyzes the determinants of the financial sustainability of the cooperative savings and credit sector in Peru.

Abstract

Purpose

This research analyzes the determinants of the financial sustainability of the cooperative savings and credit sector in Peru.

Design/methodology/approach

The econometric analysis uses a balanced data panel with a sample of 34 savings and credit cooperatives in Peru for the period 2010–2017. The estimates were considered using the static fixed-effects model to assess the financial sustainability.

Findings

The results show that the interest rate differential, the number of years of activity, the size of assets and the return on assets are explanatory variables of the financial sustainability of savings and credit cooperatives in Peru.

Research limitations/implications

This research promotes reflection and discussion for the design of policies that improve the level of competition for the Peruvian savings and credit cooperative model, based on the level of financial sustainability.

Originality/value

This study is one of the first to identify the determinants of the financial sustainability of the savings and credit cooperative sector in Peru.

Peer review

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-01-2022-0064

Details

International Journal of Social Economics, vol. 50 no. 3
Type: Research Article
ISSN: 0306-8293

Keywords

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