Delinquency, provisions, and financial profitability in Peru’s Municipal Savings and Credit Banks during the COVID‑19 crisis

Authors

DOI:

https://doi.org/10.54167/ejbei.v3i2.2196

Keywords:

Credit risk, Profitability, Provision coverage, Loan delinquency, Loan-loss provisions, COVID-19

Abstract

The objective of this study is to analyze the relationship between credit risk and profitability of Peruvian Municipal Savings and Credit Banks (CMACs) with lower loan loss provision coverage during the period 2019–2022. A quantitative, non-experimental, and longitudinal approach is used, employing panel data and Spearman's rho correlation coefficient on 48 observations per institution. The results show a statistically significant relationship between changes in delinquency rates, loan loss provision coverage, and financial profitability indicators (ROA and ROE), with differentiated effects among institutions. Higher credit risk is negatively associated with ROE, while loan loss provision coverage shows a buffering effect on return on equity, especially in contexts of greater financial stress. It is concluded that credit risk management is a determining factor for the financial stability and sustainability of CMAC profitability in systemic crisis scenarios.

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Author Biographies

  • Everth Rolando Najar-Ojeda, Escuela de Posgrado Newman, Perú

    Doctor of Business Administration, Master of Business Management, and completed Master's degree in Human Resource Management. He has teaching experience at the undergraduate and graduate levels and has served as a mentor at the Banco Pichincha School of Channels in Peru. He is a thesis advisor and researcher for the Newman Graduate School. He is a member of the REDEES research group (Challenges of the Economy in Economic, Emotional, and Social Development) and is currently working on several research articles in international collaboration with professionals from Spain.
    A professional with over twenty years of experience in the financial system, he has served as a manager in various Peruvian financial companies. He has experience in operational and business management. He also specializes in microfinance and consumer banking.

  • Cristóbal Toro-Gallego, Universidad Internacional de La Rioja, España

    Full-time professor and researcher in the Business Administration Department and affiliated with the Faculty of Business and Communication at the International University of La Rioja (UNIR). I currently serve as Academic Coordinator. I am an expert in business management, administration, and leadership, with over 25 years of professional experience collaborating on national and international projects. I have helped public and private organizations analyze, design, and manage their business processes, systems, and data to achieve continuous improvement. I am an entrepreneur and a mentor accredited by the Spanish Mentoring Association. Throughout my career, I have worked for many years as an advisor and analyst on business strategy, innovation, and business design in international contexts. I am frequently consulted on investments and business opportunities in the digital economy and business services sectors. I am a partner in several business ventures and an external advisor on numerous investments in Spain and Eastern Europe. I hold the position of Vice President of the International Association of BPM Professionals in Spain (ABPMP Spain) and Delegate for Spain and Latin America for the National Union of Romanian Employers (Confederation of Romanian Employers), with which I have collaborated for over 12 years. I am part of the REDEES research group (Challenges of the economy in economic, emotional, and social development) at the University of Ibero-American Republic (UNIR). I also regularly participate as a researcher and expert in Technology Transfer Office (TTO) projects at UNIR. Since July 2019, I have been one of the coordinators of the international Interreg Europe project "BIGDATA 4RIVERS" (PGI05949), where we work with the governments of seven EU countries to create SMART policies and solutions that efficiently manage water resources with the help of technology. I am a Member of the Scientific Association of Economics and Business Management (Spain, ACEDE) and a Regular Member of Catholic Research Economists Discussion Organization (CREDO).

  • Edgardo Mayta-Mamani, Universidad Privada de Tacna, Perú

    Researcher and lecturer in research methodology. Thesis advisor for undergraduate and graduate students. University teaching and business consulting.

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Published

07/01/2026

Issue

Vol. 3 No. 2 (2026)

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Articles

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Copyright (c) 2026 Everth Rolando Najar-Ojeda, Cristóbal Toro-Gallego, Edgardo Mayta-Mamani

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

How to Cite

Delinquency, provisions, and financial profitability in Peru’s Municipal Savings and Credit Banks during the COVID‑19 crisis. (2026). Economicus Journal of Business and Economics Insights, 3(2), 1-19. https://doi.org/10.54167/ejbei.v3i2.2196