Determinants of bank profitability: evidence from CreditCoop

Co-operative banks were not analyzed in great detail in the literature compared to credit unions or even commercial banks. Through this paper we want to identify the main determinants of CreditCoop profitability, determinants: internal determinants (result of bank management) and external determinants (macroeconomic and industry variables). We found that the loan to assets ratio and equity to assets ratio have the highest and significant impact over the CreditCoop profitability. Moreover, we found that the LA ratio has a positive impact on both ROA and ROE, while the EA ratio has a negative impact on the same dependent variables.