ABSTRACT
Credit unions are exposed to credit risk like any other financial institution and this risk is defined as the possibility that the borrower does not fulfill his obligations with the cooperative, that is, of not honoring the commitment to pay his debts. To mitigate this risk, cooperatives make provisions for loan losses (PCLD), in order to cover this type of risk that is inherent to their operations. At the beginning of 2020, a strong public health crisis, caused by a seriously contagious pandemic with a high degree of mortality, which became known as the COVID-19 pandemic, impacted the entire economy, with serious social and economic consequences. These events caused a financial crisis that spread quickly, affecting the income of people, companies and the government, the latter having to help the first two through social and financial programs. Based on this context, this study aimed to analyze whether PCLD increased after the onset of the economic and health crisis in the 99 largest credit unions in Brazil, and these organizations were selected according to their total assets. The credit portfolios and PCLD of these organizations were analyzed from 2018 to 2021. This research is of a quantitative nature and its data collection took place through the BACEN database. The results pointed out that during the economic crisis, there was a significant and accentuated change in the PCLD of the cooperative institutions analyzed, but this change has been noticed since 2018, the beginning of the observations of this study.
ABSTRACT
The transition to remote working in the credit union industry escalated due to the requirements of social distancing required by the Center for Disease Control and Prevention (CDC) during the 2020 pandemic resulting in more individuals working from home while maintaining daily operations within their credit union. However, there is a deficiency in the literature that focuses on the guidance, resources, and strategic and cultural structure to understand the skills, behaviors, and experiences needed to work remotely in the credit union industry to grow relationships. This qualitative case study aimed to explore how lived experiences of working remotely in the credit union industry utilized skills and behavior to grow relationships while maintaining a prosperous work environment and the health and well-being of individuals working in the industry. The population comprised 13 credit union employees who transitioned to remote working during the pandemic from a traditional work environment. Self-Efficacy Theory and Social Exchange Theory were used as the conceptual framework for the study. Virtual interviews were completed using semi-structured interview questions. Data collected were transcribed, coded, and analyzed through thematic coding using the NVivo software. Findings confirmed that existing skills, behavior, and relationships with individuals influenced the participants' lived experiences to successfully transitioned to work remotely. The practical implications of the results include the possible increase in the acceptance of remote workers in the credit union industry. Future researchers should replicate this study with larger sample sizes, use mixed methods, and explore other factors that affect the lived experiences of individuals working remotely. (PsycInfo Database Record (c) 2023 APA, all rights reserved)
ABSTRACT
The transition to remote working in the credit union industry escalated due to the requirements of social distancing required by the Center for Disease Control and Prevention (CDC) during the 2020 pandemic resulting in more individuals working from home while maintaining daily operations within their credit union. However, there is a deficiency in the literature that focuses on the guidance, resources, and strategic and cultural structure to understand the skills, behaviors, and experiences needed to work remotely in the credit union industry to grow relationships. This qualitative case study aimed to explore how lived experiences of working remotely in the credit union industry utilized skills and behavior to grow relationships while maintaining a prosperous work environment and the health and well-being of individuals working in the industry. The population comprised 13 credit union employees who transitioned to remote working during the pandemic from a traditional work environment. Self-Efficacy Theory and Social Exchange Theory were used as the conceptual framework for the study. Virtual interviews were completed using semi-structured interview questions. Data collected were transcribed, coded, and analyzed through thematic coding using the NVivo software. Findings confirmed that existing skills, behavior, and relationships with individuals influenced the participants' lived experiences to successfully transitioned to work remotely. The practical implications of the results include the possible increase in the acceptance of remote workers in the credit union industry. Future researchers should replicate this study with larger sample sizes, use mixed methods, and explore other factors that affect the lived experiences of individuals working remotely. (PsycInfo Database Record (c) 2023 APA, all rights reserved)
ABSTRACT
Purpose>This study contributes to a growing body of literature on the Paycheck Protection Program (PPP) by examining how lender incentives affected prioritization of large borrowers. In addition, this study separately examines incentives for commercial banks and credit unions during the program.Design/methodology/approach>Using 2020 PPP loan data, the authors create a proxy for lender loan prioritization by comparing the skewness statistics of large and small loan distributions. A regression model is used to examine lender reporting incentives and loan prioritization.Findings>Results show that larger borrowers were prioritized in receiving PPP loans earlier. Lenders with financial reporting concerns and commercial banks favored large borrowers to a greater extent.Practical implications>This study may inform social planners and regulators about the benefits and costs of delegating emergency funding loan decisions to financial institutions.Originality/value>The authors believe this paper is the first to examine financial institution reporting incentives in relationship to PPP lending practices. It adds novelty by examining lender incentives, while prior research has focused heavily on the economic consequences of the program and how borrower–lender relationships affected loan practices during the program.
ABSTRACT
The financial sector plays a fundamental role in Canadian society;credit unions, in particular, cater to a specific group of stakeholders not commonly served by traditional financial institutions. This research investigates the social responsiveness (CSR2) approaches implemented by credit unions during the pandemic, the type of actions implemented, the stakeholders assisted, and whether the size of credit unions may affect their responses. Data were collected from the 100 largest credit unions from nine Canadian provinces and assessed through qualitative content analysis. Results show that Canadian credit unions have implemented accommodative and proactive approaches when addressing COVID-19, through more operational than financial actions directed to their clients and employees, and that those with larger assets implement a greater number of actions compared to credit unions with smaller assets. More importantly, results show that traditional CSR2 approaches (e.g., RDAP) do not fit unexpected crises, so novel approaches are required to face future crises and remain resilient. While we aim to contribute to the body of literature by examining how credit unions have assisted their stakeholders during the pandemic, we also, and most importantly, seek to provide material for discussing and reflecting on how organizations are prepared to face crises that will likely arise in the future.
ABSTRACT
La crisis asociada a la Covid ha puesto de manifiesto nuevamente la relevancia del sistema financiero. La pasada crisis, de carácter financiero había impactado intensamente en el sistema bancario, provocando un fuerte retroceso en la actividad crediticia, lo que, en muchos casos se ha traducido en riesgo creciente de exclusión financiera, sobre todo en aquellos territorios en retroceso demográfico. En este contexto, las cooperativas de crédito, caracterizadas por su reducido tamaño, localismo y vocación de banca de proximidad, han sufrido un deterioro patrimonial menos acusado que el resto de las entidades del sistema bancario. Además, actúan en las áreas donde la densidad de población es más baja, distinguiendo su actividad del negocio de la banca lucrativa, lo que permite paliar la menor implantación de entidades financieras, contribuyendo mitigar la exclusión financiera de carácter geográfico en estos espacios. Así, en un intento por reivindicar el papel de las cooperativas de crédito, en especial en el desarrollo de los territorios de la España Vacía, se plantea el presente trabajo con un doble objetivo: por un lado, analizar la relación existente entre sistema financiero, empleo y población, y por otro, comprobar si la presencia de las cooperativas de crédito es mayor allí donde ambos factores son más débiles, dando servicio en los espacios no atendidos por el resto de los intermediarios financieros. Para ello se presenta un estudio empírico realizado a partir de un modelo de ecuaciones estructurales mediante una técnica de mínimos cuadrados parciales para datos demográficos y de actividad financiera en 2018, donde la provincia se utiliza como unidad de análisis.Alternate :The Covid-related crisis has once again highlighted the relevance of the financial system. The last financial crisis had an intense impact on the banking system, causing a sharp decline in lending activity, which, in many cases, has resulted in an increasing risk of financial exclusion especially in those territories in demographic decline. In this context, credit unions, characterized by their small size, localism and vocation of proximity banking, have suffered a less marked deterioration in assets than the rest of the entities of the banking system. In addition, they operate in areas where the population density is lower, differentiating their activity from the business of lucrative banking contributing to alleviate the financial exclusion of a geographical nature in these spaces. In an attempt to vindicate the role of credit unions, in the development of the territories of depopulation Spain, the present work is proposed. The aim of this is, on the one hand, to analyze the relationship between the financial system, employment and population, and on the other, to check if the presence of credit unions is greater where both factors are weaker, providing service in the spaces not attended by financial intermediaries. To this end, an empirical study is presented based on a model of structural equations using a partial least squares technique for demographic and financial activity data in 2018, the province is used as a unit of analysis.