ABSTRACT The global COVID-19 pandemic caused significant economic and financial losses in the Ecuadorian banking sector. This study aims to determine the extent to which credit risk and liquidity affect the profitability of mutual savings banks in Ecuador between 2018 and 2021. To this end, the population consisted of the four existing mutual savings banks, and data from a panel of 192 observations were used, applying a PLS-SEM model to demonstrate the relationships. The results showed that credit risk has a negative impact on the liquidity and profitability of these financial institutions; in the case of liquidity, it was found that it does not affect profitability. Consequently, it is essential to control credit risk through delinquency indices, which makes it necessary to consider the structure of the loan portfolio.

RESUMEN La pandemia mundial producto del COVID-19 ocasionó importantes pérdidas económicas y financieras en el sector bancario ecuatoriano. El objetivo del presente estudio es determinar en qué medida el riesgo crediticio y la liquidez afectan la rentabilidad de las mutualistas en Ecuador, entre el 2018 y 2021. Para tal efecto, la población estuvo constituida por las cuatro mutualistas existentes, con cuyos datos se trabajó con datos de panel de 192 observaciones, aplicando un modelo PLS-SEM para evidenciar las relaciones. De esta manera, los resultados mostraron que el riesgo crediticio incide negativamente sobre la liquidez y la rentabilidad de estas instituciones financieras; en el caso de la liquidez, se ha podido percibir que esta no afecta a la rentabilidad. En consecuencia, es sumamente importante controlar el riesgo crediticio, a través de los índices de morosidad, por lo que es necesario considerar la estructura de cartera.

ABSTRACT Higher education institutions establish alliances in search of benefits for students by granting them student credit cards; However, this may involve a credit risk, consequently, unexpected financial results. Given this situation, the objective of this research is to analyze the financial risks with the use of this instrument and its impact on the portfolio of a higher education institution located in the city of Guayaquil in the period 2018 - 2020, whose name has been omitted by privacy policies. The methodology implemented has a descriptive-explanatory design, of a longitudinal non-experimental type with a mixed approach. A documentary analysis of the information provided by the institution is carried out and a survey is applied to the population made up of 9 officials from the credit and collections area. The results obtained show a binding relationship between the university and financial institutions in order to benefit students. However, the lack of strategies and policies to apply an adequate collection system has generated an overdue portfolio that negatively influences the budget; ergo, the loss of financial and non-financial resources affecting the fulfillment of institutional objectives.

RESUMEN Las instituciones de educación superior establecen alianzas en búsqueda de beneficios para los estudiantes al otorgarles la tarjeta de crédito estudiantil; no obstante, esto puede contemplar un riesgo crediticio, en consecuencia, resultados financieros no esperados. Ante esta situación, el objetivo de la presente investigación precisa analizar los riesgos financieros con el uso de este instrumento y su impacto en la cartera de una institución de educación superior ubicada en la ciudad de Guayaquil en el periodo 2018 - 2020, cuyo nombre se ha omitido por políticas de privacidad. La metodología implementada tiene un diseño descriptivo-explicativo, de tipo no experimental longitudinal con enfoque mixto. Se realiza un análisis documental de la información proporcionada por la institución y se aplica una encuesta dirigida a la población conformada por 9 funcionarios del área de crédito y cobranzas. Los resultados obtenidos evidencian una relación vinculante entre la universidad y las instituciones financieras en pos de beneficiar a los estudiantes. Sin embargo, la falta de estrategias y políticas para aplicar un sistema de recaudación adecuado ha generado una cartera vencida que influye negativamente en el presupuesto; ergo, la pérdida de recursos financieros y no financieros afectando el cumplimiento de los objetivos institucionales.

Abstract The Basel large exposures standard, addressed to banks, is in the process of being implemented, and although the new rule is reducing the limit for the large credit exposures in banks, and is geared to better control the portfolio risk parameters that make a portfolio more prone to losses due to credit concentration, it is important to know the share of risk and capital implicit to this new rule. In this work, the implicit add-ons for credit risk concentration are determined through a Monte Carlo credit risk model, and the results are compared with current capital requirements. The author also analyzed the complete Basel framework to understand how the concentration risk is addressed in an integrated approach rather than with a specific capital supplement.

Resumen La regulación de Basilea sobre grandes exposiciones está en proceso de implementación y, aun que es una regulación que reduce el límite del tamaño para las exposiciones de gran tamaño en los bancos y está orientada a un mejor control de los parámetros de riesgo que ocasiona que los portafolios se inclinen más a tener pérdidas grandes por concentración de crédito, es importante conocer la porción de riesgo de crédito y capital que lleva implícita. En este trabajo se determinan, mediante una simulación Montecarlo a través de un modelo de riesgo de crédito, los add-ons implícitos (o añadidos implícitos) debidos a la concentración de crédito, y se comparan con los requisitos actuales de capital. Al mismo tiempo, se analiza el marco completo de Basilea para entender cómo se aborda el riesgo de crédito de concentración, esto es, de forma integral, más que mediante un suplemento particular de capital.

Abstract Purpose: This paper makes a novel attempt to estimate the potential impact of credit risk on foreign direct investment (FDI hereafter), thereby focusing on a completely unexplored area in the existing empirical literature. Design/methodology/approach: To provide a comprehensive understanding of the relationship between credit risk and FDI inflows, the study incorporates all the eight-member economies of the South Asian Association of Regional Cooperation (SAARC hereafter) and analyzes a panel data set, over the period 2011 to 2019, extracted from the World Development Indicators, using the suitable econometric techniques for the efficient estimations of the specified models. Findings: The results indicate a negative and statistically significant relationship between the credit risk of the banking sectors and FDI inflows. Similarly, market size and inflation rate appear to be the two other main factors behind the increasing FDI inflows in the SAARC member economies. Interestingly, the size of the market became irrelevant in attracting FDI inflows when the Indian economy is excluded from the sample due to its higher economic weight. On the other hand, FDI inflows are not dependent on the level of trade openness, with most of the specifications showing either an insignificant or negative coefficient of the variable. Practical implications: The obtained results are unique and robust to alternative methodologies, and hence, the SAARC economies could consider them as the critical inputs in formulating the appropriate policies on FDI inflows. Originality/value: The findings are unique and original. The authors have established a relationship between credit risk and FDI for the first time in the SAARC context.

Abstract Purpose: This study examines the impact of competition and concentration on bank income smoothing in Central and Eastern European (CEE) countries. Design/methodology/approach: The two-step system GMM method was used to analyse the impact of competition and concentration on bank income smoothing in 17 CEEs from 2004 to 2015. Findings: Loan loss provisions (LLPs) are negatively related to bank competition and concentration. The authors find no evidence for income smoothing using LLPs in a high-competition or high-concentration environment. Research limitations/implications: A limitation of the study is that the analysis was restricted to commercial banks. The authors did not examine investment banks or microfinance banks in this study. Also, not having access to databases does not allow them to include recent years in the study. Practical implications: CEE commercial banks will likely keep fewer provisions or engage in under provisioning when they face intense competition, and this can expose them to credit risk, which may threaten their stability. Originality/value: This study is the first to investigate the effect of concentration and competition on income smoothing among CEE banks.

Associative mechanisms (such as cooperatives) offer various benefits to their members regarding financial advantages and risk management, providing access to skills and knowledge, strengthening communication and relationships, and offering members stronger negotiation and bargaining power. However, how membership to associative mechanisms contributes to small-scale farmers' resilience is not well documented. This article explores how associative mechanisms contribute to small-scale farmers' ability to absorb shocks, remain productive, and maintain their system's equilibrium. In total, 1110 respondents from seven Mozambique, Malawi and Madagascar districts were interviewed using a mixed assessment method. The data was analysed using a participant perspective. Various findings in the data showed that associative mechanisms benefit their members, including increased access to credit and more diverse market access, and enable members to employ less drastic coping strategies than non-members. The main recommendation is that farmers' associative mechanisms should be supported and guided to be internally driven and motivated mechanisms.

ABSTRACT The study examined the effects of mandatory International Financial Reporting Standards (IFRS) adoption on the quality of accounting information from three perspectives: the ability of accounting figures to explain credit ratings and their evolution after IFRS adoption; the difference in information gains from mandatory IFRS adoption between emerging and developed countries; and the identification of aspects of national governance capable of explaining these information gains. This article differs from the existing literature in three respects: it uses a more comprehensive and heterogeneous sample of emerging and developed countries; it uses the bootstrapping resampling method for a consistent analysis of the results; and it examines the heterogeneity of the effects of IFRS adoption as a function of country-level development and governance characteristics. The study reinforces the relevance of accounting information for analyzing companies' credit risk and makes new contributions to the literature on the heterogeneity of the effects of IFRS adoption. By using a multi-country sample, the article has potential implications for national and international accounting and finance literature, and is also useful for regulators and international portfolio managers. The analyses were based on the ratings and annual accounting data of 566 companies domiciled in 36 countries over the period from 2005 to 2017, using a bootstrapping resampling method. This article documented that mandatory IFRS adoption increased the ability of accounting data to explain the credit ratings assigned by rating agencies. Moreover, it was found that this relationship is, on average, more pronounced in emerging economies. The analysis also showed a positive relationship between the control of corruption and the information gain associated with IFRS adoption. (IFRS perspectives respects results countrylevel country level characteristics multicountry multi managers 56 3 200 2017 agencies Moreover average economies 5 20 201 2

RESUMO O estudo investigou os efeitos da adoção mandatória das Normas Internacionais de Contabilidade (International Financial Reporting Standards [IFRS]) sobre a qualidade das informações contábeis sob três aspectos: a capacidade dos números contábeis explicarem os ratings de crédito e sua evolução após a adoção das IFRS; a diferença em termos de ganho informacional com a adoção mandatória das IFRS entre países emergentes e desenvolvidos; e a identificação de aspectos de governança nacional capazes de explicar os referidos ganhos informacionais. Este artigo se diferencia da literatura existente em três aspectos: utiliza amostra mais abrangente e heterogênea, composta por países emergentes e desenvolvidos; utiliza o método de reamostragem por bootstrapping para análise consistente dos resultados; e investiga a heterogeneidade dos efeitos da adoção das IFRS como função do nível de desenvolvimento e das características de governança no nível do país. O estudo reforça a relevância da informação contábil para a análise do risco de crédito das empresas e traz novas contribuições à literatura sobre a heterogeneidade dos efeitos da adoção das IFRS. Ao utilizar amostra de diversos países, este artigo tem potencial impacto na literatura contábil e financeira nacional e internacional, também se mostrando útil para reguladores e gestores de portfolios internacionais. As análises se basearam nos ratings e dados contábeis anuais de 566 empresas domiciliadas em 36 países, durante o período de 2005 a 2017, por meio de método de reamostragem por bootstrapping. Este artigo documenta que a adoção mandatória das IFRS aumentou a capacidade dos dados contábeis explicarem as classificações de crédito atribuídas pelas agências de classificação de risco (agências de rating [AR]). Ademais, evidencia que essa associação é, em média, mais acentuada em economias emergentes. E indica, ainda, relação positiva entre controle da corrupção (CC) e ganho informacional associado à adoção das IFRS. International [IFRS] desenvolvidos informacionais heterogênea resultados país internacional internacionais 56 3 200 2017 AR. AR . [AR]) Ademais é média indica ainda CC (CC [IFRS 5 20 201 [AR] 2 [AR

RESUMO No capitalismo contemporâneo, a dívida assume a centralidade da dinâmica do sistema econômico dentro do que é denominado financeirização da economia. Dentro dessa linha de análise, emergem categorias como “financeirização do cuidado” e/ou “financeirização da velhice” como formas explicativas do processo de endividamento da pessoa idosa, sobretudo, para honrar as despesas de cuidado de longa duração ou para os gastos de saúde. Este artigo analisa esse fenômeno a partir de três fatores de endividamento: a saúde, o cuidado e o crédito consignado. A conclusão é que a proteção social, antes exclusividade do Estado, foi delegada ao mercado financeiro e isso amplia o risco de endividamento e expropriação, embora nem sempre a pessoa idosa perceba essa lógica como perversa. contemporâneo economia análise eou velhice sobretudo saúde consignado social Estado expropriação perversa

ABSTRACT In contemporary capitalism, debt assumes the centrality of the system’s dynamics within what is called the financialization of the economy. Within this line of analysis, categories such as “financialization of care” or “financialization of old age” emerge as explanatory forms of the elderly person’s indebtedness process, above all, to cover long-term care expenses or health expenses. This article analyzes this phenomenon based on three debt factors: health, care and a specific kind of credit in Brazil (payroll loans). The conclusion is that social protection tends to be delegated to the financial market and this increases the risk of debt and expropriation. The interest of the article is to explore how this situation is perceived by retirees and pensioners. capitalism systems system s economy analysis age persons person process all longterm long term factors payroll loans. loans . loans) expropriation pensioners

BACKGROUND: An improved understanding of the reasoning behind model decisions can enhance the use of machine learning (ML) models in credit scoring. Although ML models are widely regarded as highly accurate, the use of these models in settings that require explanation of model decisions has been limited because of the lack of transparency. Especially in the banking sector, model risk frameworks frequently require a significant level of model interpretability AIM: The aim of the article is to evaluate traditional model risk frameworks to determine their appropriateness when validating ML models in credit scoring and enhance the use of ML models in regulated environments by introducing a ML interpretability technique in model validation frameworks SETTING: The research considers model risk frameworks and regulatory guidelines from various international institutions METHOD: The research is qualitative in nature and shows how through integrating traditional and non-traditional model risk frameworks, the practitioner can leverage trusted techniques and extend traditional frameworks to address key principles such as transparency RESULTS: The article proposes a model risk framework that utilises Shapley values to improve the explainability of ML models in credit scoring. Practical validation tests are proposed to enable transparency of model input variables in the validation process of ML models CONCLUSION: Our results show that one can formulate a comprehensive validation process by integrating traditional and non-traditional frameworks CONTRIBUTION: This study contributes to existing model risk literature by proposing a new model validation framework that utilises Shapley values to explain ML model predictions in credit scoring

BACKGROUND: Systemic risk studies in the coronavirus disease 2019 (COVID-19) period focus mostly on the banking sector. Regulators however, yearn for data on the contribution of shadow banking to systemic risk during the pandemic AIM: The primary goal of the study is to determine the contribution of shadow banking to systemic risk during the COVID-19 period in South Africa SETTING: The study focussed on shadow banking, non-bank financial institutions involved in credit intermediation outside the traditional banking system in South Africa METHOD: Systemic risk is measured by conditional value-at-risk methodology using monthly market returns of fixed-income funds, funds-of-funds, money market funds and multi-asset funds from January 2015 to December 2021 RESULTS: Shadow banking contributed to systemic risk during COVID-19, and systemic risk reached an all-time high during the onset of the pandemic. Money market funds exhibited higher systemic risk because of the COVID-19 shock. However, multi-asset funds and funds-of-funds are the classes that contributed more to systemic risk during the COVID-19 period. Furthermore, systemic risk trends of multi-asset funds and funds-of-funds increased with the rise in COVID-19 infections, except in the third wave when systemic risk peaked months after the surge in COVID-19 cases CONCLUSION: Shadow banking contributes to systemic risk in South Africa and systemic risk peaked during the COVID-19 period CONTRIBUTION: There is growing evidence on systemic risk during COVID-19, and this study extends the focus to shadow banking. It draws attention of regulators to credit intermediation outside traditional banks

Climate change poses a considerable risk to sustaining smallholder farming in developing countries and hinders efforts to reduce poverty and food insecurity. One way to mitigate and counter the adverse effects of climate change is through adaptation. This study aimed to investigate the climate change adaptation strategies adopted by smallholder farmers in the uMkhanyakude district of KwaZulu-Natal, South Africa. A stratified random sampling procedure collected data from 400 smallholder farmers. Focus group discussions were used to gather in-depth knowledge about climate change adaptation. A multinomial regression model (MNL) was used to analyse the adaptation strategies and their determinants. The results of the MNL model revealed that factors such as access to extension services, Tropical Livestock Units, gender of the household head, age, land size and market access play an important role in farmers' adaptation to climate change. The study recommends that programmes and initiatives aimed at supporting smallholder farmers should facilitate their access to both formal and informal sources of credit. By addressing this key factor, policymakers can contribute to building the adaptive capacity of farmers and strengthening their ability to cope with climate change challenges.

Resumen Se analiza de manera empírica la base de datos de la Fintech estadounidense LendingClub, la empresa precursora del mercado de préstamos digitales persona a persona. Se busca contextualizar al modelo de negocio a través de su base de datos y las variables implicadas en el perfil de riesgo de los participantes. Se toman cuatro ventanas de tiempo para capturar ciclos económicos y su impacto en el perfil crediticio de los prestatarios. Para identificar los perfiles de riesgo de manera analítica, implementamos la técnica de clústeres de K-medias, definiendo un patrón de segmentación de participantes en función de la tasa de interés de los préstamos y la calificación FICO (Fair Isaac Company). Los patrones de agrupación son constantes a lo largo de los periodos estudiados y permiten determinar niveles promedio de ingreso, tipos de préstamos adquiridos y proveniencia geográfica según perfil de riesgo. Pocos estudios contemplan toda la información disponible de la operación de LendingClub (2007-20203T); por lo tanto, este estudio también identifica la transición a la madurez de este modelo de negocio. Este trabajo logra dos objetivos: demostrar la evolución de los clientes y la plataforma a través del tiempo en cuanto se refiere a los perfiles de riesgo de los participantes prestatarios, y destacar el uso de clústeres de K-medias como una herramienta apropiada para el perfilamiento frente a otras alternativas analíticas.

Abstract We empirically analyze the LendingClub dataset, the pioneer of the peer-to-peer digital lending market. We aim to contextualize the business model through its database and the variables involved in the risk profile of the participants. We consider four different periods to capture economic cycles and their impact on the credit profile of borrowers. We implement K-Means Clustering Analysis to analytically define a segmentation pattern for participants based on the interest rate of the loans and the FICO (Fair Isaac Company) score. The clusters are constant throughout the periods studied and allow to detect average income levels, issued loans destination and borrower geographic origin according to risk profile. Few studies contemplate all the information available for the LendingClub operation (2007-2020Q3), therefore, this study illustrates how this business model has transitioned to maturity. This work achieves two objectives: to demonstrate the evolution of clients and the platform over time in terms of the risk profiles of participating borrowers, and to highlight the use of K-Means Clustering as an appropriate tool for profiling against to other analytical alternatives.

ABSTRACT We have analyzed the association between firms' life cycle stages (LCSs) and their debt maturity (DM). This paper deepens the discussion on capital structure from the perspective of the LCSs' dynamic effect associated with DM. The sample was composed by secondary data from 370 (non-financial) Brazilian listed companies in the period from 2010 to 2019, gathered quarterly. The data were analyzed through descriptive statistics, tests of differences between means and regression analysis from panel data. The results showed that the DM presents no association with LCS, following an inverted U-shape. It has been observed that the maturity stage had a positive effect on the DM, however, as companies move towards the shake-out and decline stages, DM experiences successive reductions. The findings are relevant for providing insights for future research. In addition, they have the potential to contribute to managers, board members, credit committees, capital providers in general, risk management process, and resource allocation. firms LCSs (LCSs . (DM) 37 nonfinancial non financial (non-financial 201 2019 quarterly statistics LCS Ushape. Ushape U shape. shape U-shape however shakeout shake out reductions research addition managers members committees general process allocation (DM 3 20 2

RESUMO Este trabalho analisou a associação entre os Estágios do Ciclo de Vida da Firma (ECVs) e a Maturidade da Dívida (MD). O estudo aprofunda as discussões sobre estrutura de capital a partir da análise do efeito dinâmico dos ECVs associados à MD das empresas brasileiras. A amostra foi composta por dados trimestrais de 370 empresas (não financeiras) brasileiras listadas no período de 2010 a 2019. Os dados foram analisados por meio da estatística descritiva, testes de diferenças entre as médias e análise de regressão com dados em painel. Os resultados demonstraram uma MD associação com os ECVs, seguindo um formato de U invertido. Observou-se que o estágio de Maturidade afeta positivamente a MD, contudo, à medida que as empresas transitam em direção ao estágio de Turbulência e Declínio, a MD sofre reduções sucessivas. Os achados são relevantes por proporcionarem insights para pesquisas futuras e apresentarem potencial de contribuição para gestores, conselheiros de administração, comitês de crédito e provedores de capital em geral na análise de crédito das empresas, gestão de riscos e concessão de recursos. (ECVs MD. . (MD) 37 não financeiras 201 2019 descritiva painel invertido Observouse Observou se contudo Declínio sucessivas gestores administração recursos (MD 3 20 2

RESUMO Neste estudo, abordamos o problema da tomada de decisões de investimento na compra de imóveis por meio de crédito hipotecário na Colômbia. Embora se espere que esse processo seja estruturado para minimizar os riscos, é evidente que nem todas as informações relevantes sobre o instrumento financeiro e a identificação de riscos, que poderiam ser evitados, são consideradas. Em vez disso, há uma antecipação de alta rentabilidade imobiliária e baixa incerteza. Isso ficou evidente durante a crise causada pela COVID-19, pois, apesar de seu impacto nos indicadores econômicos, o endividamento no mercado imobiliário continuou a aumentar. Portanto, foi necessário encontrar evidências empíricas suficientes para sustentar essa hipótese. Para isso, foi utilizado um modelo de correção de erros. Os resultados revelam que os investidores em imóveis na Colômbia, por meio de crédito hipotecário, estão se afastando da tomada de decisões com base em informações pertinentes e de uma avaliação adequada dos riscos. Diante dessa evidência, é fundamental promover a tomada de decisões baseada em informações relevantes e na avaliação de riscos nesse tipo de investimento e estender esses princípios a outros tipos de investimentos, a fim de promover um ambiente financeiro mais sólido. CLASSIFICAÇÃO DE JEL D81, G11 CONTEÚDO Introdução; 1. Situação de contexto; 2. Alguns referenciais teóricos; 3. Dados estilizados; 4. Metodologia; 5. Resultados; 6. conclusões; Referências

ABSTRACT This study addresses the issue of investment decision-making in home purchases through mortgage credit in Colombia. Although this process is expected to be structured to minimize risks, it is evident that not all relevant information about the financial instrument and risk identification, which could be avoided, is considered. Instead, there is an anticipation of high real estate profitability and low uncertainty. This was evident during the crisis caused by COVID-19, as despite its impact on economic indicators, housing market borrowing continued to rise. Therefore, it was necessary to find sufficient empirical evidence to support this hypothesis. To achieve this, an error correction model was used. The results reveal that investors in housing in Colombia, through mortgage credit, are moving away from decision-making based on pertinent information and a proper risk assessment. Given this evidence, it is crucial to promote decision-making based on relevant information and risk assessment in this type of investment, and extend these principles to other types of investments to foster a more robust financial environment. JEL CLASSIFICATION: D81, G11 CONTENT: Introduction; 1. Context situation; 2. Some theoretical references; 3. Stylized data; 4. Methodology; 5. Results; 6. Conclusions; References

RESUMEN En el presente estudio, se aborda el problema de la toma de decisiones de inversión en la compra de vivienda a través del crédito hipotecario en Colombia. Aunque se espera que este proceso sea estructurado y minimice los riesgos, se evidencia que no se considera toda la información relevante sobre el instrumento financiero y la identificación de riesgos que se podrían evitar, sino que se anticipa una alta rentabilidad de los inmuebles y baja incertidumbre. Este hecho se pudo evidenciar durante la crisis generada por el COVID-19; pese a su impacto en los indicadores económicos, el endeudamiento en el mercado de vivienda continuó en aumento. Por consiguiente, se planteó hallar evidencia empírica suficiente para sustentar dicha hipótesis. Para ello, se utilizó un modelo de corrección de error. Los resultados revelan que los inversores en vivienda en Colombia, mediante crédito hipotecario, están alejándose de una toma de decisiones fundamentada en la información pertinente y una evaluación adecuada de los riesgos. Dada esta evidencia, es crucial fomentar una toma de decisiones basada en información relevante y una evaluación de riesgos en este tipo de inversión, como también extender estos principios a otros tipos de inversiones, para así promover un entorno financiero más sólido. CLASIFICACION JEL: D81, G11 CONTENIDO: Introducción; 1. Situación de contexto; 2. Algunos referentes teóricos; 3. Datos estilizados; 4. Metodología; 5. Resultados; 6. Conclusiones; Referencias

Abstract Purpose To assess the determinants of the capital structure of Brazilian credit unions. Theoretical framework Capital structure represents one of the central topics in corporate finance theory and decisions about capital structure are among the most important in the strategic management of an organization. Based on the literature on non-financial firms and banks, and further grounded in the trade-off and pecking order theories, determinants that can explain the capital structure of credit unions were selected. Design/methodology/approach The determinants were investigated for 889 Brazilian individual credit unions with information available at the Central Bank of Brazil from 2008 to 2021, totaling 10,132 annual observations, using panel data regression models. Findings Capital structure is negatively influenced by profitability and risk, and positively by size. For tangibility, there is no evident influence. Furthermore, the pecking order theory is more suitable for the case of credit unions. Practical & social implications of research The deepening of knowledge about determinants can help regulatory authorities in the development of public policies that aim to protect credit unions from systemic risk, promoting the growth of the sector, which plays an important role as an agent of social and economic development. Originality/value This study is pioneering in that it presents results indicating that the determinants traditionally considered for non-financial companies and banks are also valid for credit unions, even though they are organizations with different characteristics from the rest. organization nonfinancial non financial tradeoff trade off theories selected Designmethodologyapproach Design methodology approach 88 200 2021 10132 10 132 10,13 observations models risk size tangibility influence Furthermore sector Originalityvalue Originality value rest 8 20 202 1013 1 13 10,1 2 101 10,