The survival of Portuguese credit co-operatives: an econometric approach

• Autor(es): Cabo, Paula ; Rebelo, João
• Data: 2010
• Identificador Persistente: http://hdl.handle.net/10198/4568
• Origem: Biblioteca Digital do IPB
• Assunto(s): Credit cooperative; Solvency; Cox proportional hazards model
• Tipo de Documento: Documento de conferência
• Idioma: Inglês

Descrição

The banking system robustness is an actual concern and a priority for EU and national authorities. Although Portuguese Agricultural Credit Co-operatives (CCAM) performance, as a group, compares favourably with that of other credit institutions, individual CCAM occasionally do enter in distress. The increasingly large size of the CCAM raises concerns regarding the resolution of potential distress situations given some of the cooperative governance rules. The main purpose of this paper is to evaluate CCAM risk of insolvency. To accomplish this objective, the authors analyze the CCAM failures in the period between 1995 and 2009, adopting a Cox proportional hazards model. The model shows that Transformation ratio and Other Structural Costs ratio were important indicators to evaluate the relative risk of insolvency for CCAM.