Financial Performance Evaluation of Savings and Credit Cooperatives in the Ecuadorian Sierra, Segment 3: Application of the CAMELS Method

Abstract

Savings and Credit Cooperatives (COACs) have emerged as key players in the Ecuadorian financial sector, standing out for their ability to promote financial and social inclusion in a context of growing demand and economic challenges. The objective of this study is to evaluate the financial performance of Savings and Credit Cooperatives (COACs) in the Ecuadorian highlands, Segment 3, during the period 2019-2022. Among the materials and methods used was a quantitative and descriptive study. This study used the CAMELS methodology to assess the financial risk levels of 29 COACs active in the highlands region, which have remained within Segment 3 during the four years covered by the analysis. The financial performance evaluation highlights the need for COACs in Segment 3 to implement corrective measures to reduce their financial risk levels, identifying best practices in institutions with better performance.