Analysis of the liquidity risk in credit unions: a logit multinomial approach

Rosiane Maria Lima Gonçalves and Marcelo Braga

RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration), 2008, vol. 12, issue 4, 1019-1041

Abstract: Liquidity risk in financial institutions is associated to balance between working capital and financial demands. Other factors that affect credit union liquidity are an unanticipated increase of withdrawals without an offsetting amount of new deposits, and the lack of ability in promoting the product geographical diversification. The objective of this study is to analyze Minas Gerais state credit union liquidity risk and its factor determinants. Financial ratios and the multinomial logit model are used. The cooperatives were classified in five categories of liquidity risk: very low, low, medium, high and very high. The empirical results indicate that high levels of liquidity are related to smaller values of the outsourcing capital use, immobilization of the turnover capital, and provision ratios. So, they are associated to larger values of the deposit total/credit operations, and asset growth ratios.

Date: 2008
References: Add references at CitEc
Citations:

Downloads: (external link)
https://rac.anpad.org.br/index.php/rac/article/view/638/635 (text/html)
https://rac.anpad.org.br/index.php/rac/article/download/638/635 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:abg:anprac:v:12:y:2008:i:4:638

Access Statistics for this article

RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration) is currently edited by Marcelo de Souza Bispo

More articles in RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration) from ANPAD - Associação Nacional de Pós-Graduação e Pesquisa em Administração
Bibliographic data for series maintained by Information Technology of ANPAD ().