ANALYSIS OF CREDIT RISKTHROUGH THE TRANSITION MATRIX METHODOLOGY IN THE SAVINGS AND CREDIT COOPERATIVE "FERNANDO DAQUILEMA" LTDA

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Published: Apr 7, 2023
DOI: https://doi.org/10.52783/rlj.v11i7s.1102
Keywords:
Transition matrix Probability of default Expected loss Credit risk

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ANDREA DEL PILAR RAMÍREZ CASCO, AMARO VLADIMIR BERRONES PAGUAY, ANGEL GERARDO CASTELO SALAZAR, EMILIO FERNANDO SANTILLÁN VILLAGÓMEZ

Abstract

The purpose of this research was to ANALYZE THE CREDIT RISK THROUGH THE TRANSITION MATRIX METHODOLOGY IN THE SAVINGS AND CREDIT COOPERATIVE “FERNANDO DAQUILEMA” LTDA., In order to strengthen the comprehensive risk management, based on requirements of models and procedures of monitoring required by the Superintendency of Popular and Solidarity Economy (SEPS) control entity, for the construction of the matrices historical information was compiled from the periods March 2018 - April 2019 monthly  in order to know the improvement or deterioration of the qualification of an obligation.


The results achieved in the present investigation is to have known the current situation of the financial institution, given its weaknesses it was recommended to minimize its operating expenses to improve its profitability and efficiency, in addition a deficit of its portfolio provisions was found calculated the expected loss for which was suggested to review its methodology for granting credit in order to find weaknesses in the process.

Article Details

Issue
Vol. 11 No. 7s (2023)
Section
Corporate / Business Law
Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Author Biography

ANDREA DEL PILAR RAMÍREZ CASCO, AMARO VLADIMIR BERRONES PAGUAY, ANGEL GERARDO CASTELO SALAZAR, EMILIO FERNANDO SANTILLÁN VILLAGÓMEZ

1ANDREA DEL PILAR RAMÍREZ CASCO, 2AMARO VLADIMIR BERRONES PAGUAY, 3ANGEL GERARDO CASTELO SALAZAR, 4EMILIO FERNANDO SANTILLÁN VILLAGÓMEZ
1Ingeniera en Contabilidad y Auditoría CPA
Magister en Auditoría Integral
DOCENTE CARRERA FINANZAS
ESCUELA SUPERIOR POLITÉCNICA DE CHIMBORAZO (ESPOCH)
2Doctor en Contabilidad y Auditoría
Magister en Auditoría de Gestión de la Calidad
Magister en Contabilidad y Auditoría Mención en Riesgos Operativos y Financieros
UNIVERSIDAD DE LAS FUERZAS ARMADAS ESPE
3Ingeniero de Empresas
Magister en Contabilidad y Auditoría
Docente en la Facultad de Administración de Empresas
ESCUELA SUPERIOR POLITÉCNICA DE CHIMBORAZO (ESPOCH)
Carrera de Finanzas
4Ingeniero de Empresas
Magister en Dirección y Gestión de Proyectos
DOCENTE CARRERA FINANZAS
ESCUELA SUPERIOR POLITÉCNICA DE CHIMBORAZO(ESPOCH)

 

References

Villarreal, A., & Medina, J. (2011). "Estimation of transition matrices for the commercial portfolio of Ecuadorian financial institutions controlled by the Superintendency of Banks and Insurance". Obtained from http://bibdigital.epn.edu.ec/bitstream/15000/2699/1/CD-3384.pdf

Valencia, & Zambrano. (2012). Calculation of the probability of default for a portfolio of vehicle loans. Guayaquil: Espol.

Paredes Vallejos, D. (April 20, 2018). Effective Management of Credit Risk in Developing Financial Institutions. Best practices and methodology for risk measurement. Quito, Pichincha, Ecuador.

Támara , A., & Aristizábal , R. (2010). Estimation of expected provisions in a financial institution using Logit and Probit models. Strategic sciences.

Book I Control Standards for Financial Sector Entities. (August 13, 2018). Title IX Risk management and administration. Chapter II On credit risk management.