Credit risk management and its impact on delinquency of cooperatives in Tungurahua province

Abstract

The financial system of any country is essential for the economy, since it is said that if the financial system of a country is solid, the country's economy is stable. The objective is to analyze some of the factors that influence credit risk, which causes it to have effects on the delinquency of cooperatives in the province of Tungurahua. The method applied was descriptive and field research with a qualitative approach, in addition, the quantitative method, through the causal comparative methodology technique; The main results were that financial institutions make the economy more dynamic, through the collection of resources from the public, paying interest on these savings. They allocate these savings into investments through credit, thus generating profits and if borrower´s default on payments, this represents a risk. It is evident that cooperatives have an important role in the country's economy; these financial institutions must measure the risk in granting credit and evaluate alternative solutions to prevent default.