Citation:

Kyriazopoulos Georgios, Petropoulos Dimitrios. "Evaluation of Cooperative Banks After the Global Financial Crisis But Before the Pandemic; Evidence from Greece" International Research Journal of Economics and Management Studies, Vol. 2, No. 3, pp. 280-287, 2023.

Abstract:

As open-end banks, cooperative banks are vulnerable in times of crisis or recession, where members may massively seek the liquidity of their shares, either out of fear or to meet other more pressing needs. The lack of a secondary market for cooperative shares also contributes to this, although with the general crisis and the stock market crisis, its existence could offer little. This paper is a comprehensive and thorough research and analysis of Greece's seven main cooperative banks with liquidity, profitability and bankruptcy ratios. The initial purpose of this work is to research and record, individually and collectively, the course of prices and indicators of each cooperative bank located in Greece. The second and most basic purpose is to compare prices and analyze the financial position of each cooperative bank in Greece so that there is an overall picture of possible insolvency to creditors and the possibility of direct or indirect bankruptcy. What are the chances of bankruptcy, and how can they be expressed in simple and comprehensible numerical results? We shall attempt to address a number of queries pertaining to the financial data of banks in the financial analysis that follows. The final goal of the research could be the calculation, summary, and presentation of the results to the scientific community, as well as the conclusions of the five-year analysis, so that there is a clear picture of the financial market. This research paper's objective is to assess Greece's seven cooperative banks following the 2010 Financial Crisis.

References:

[1] Alger. G, Agenor. P, and Alger. G, Liquid Assets in Banking: Theory and Practice, Boston: Chestnut Hill, (1990).
[2] Arkan T. "The Importance of Financial Ratios in Predicting Stock Price Trends: A Case Study in Emerging Markets,” Finanse, Rynki Finansowe, Ubezpieczenia, 79(1) (2016) 13–26.
[3] Bordo. M, Eichengreen. B, Klingebiel. D, and Martinez-Peri, M, "Is the Crisis Problem Growing More Severe?," Economic Policy, 16(32) (2001) 51-82.
[4] Boyd. J. H, and Graham. S. L, "Risk, Regulation, and Bank Holding Company Expansion into Nonbanking,” Quarterly Review, 10(2) (1986).
[5] Boyd J. H, and Runkle D. E, "Size and Performance of Banking Firms: Testing the Predictions of Theory" Journal of Monetary Economics, 31(1) (1933) 47-67.
[6] Drehmann. M, and Nikolaou. K, "Funding Liquidity Risk: Definition and Measurement" BIS Working Papers: No.316 Monetary and Economic Department, (2010).
[7] Garber P.M, and Weisbrod S.R. "The Economics of Banking, Liquidity, and Money". Lexington, Mass: D.C. Heath, (1992).
[8] Gikas. D, "The Analysis and Uses of Accounting Statements", Book Published by Benou, Athens, Greece, (2002).
[9] Hannan T. H, and Hanweck G. A "Bank Insolvency Risk and the Market for Large Certificates of Deposit,” Journal of Money, Credit and Banking, 20 203-211(1988).
[10] Kantzos. K, "Analysis of Financial Statements", INTERBOOKS Publications, Athens, Greece, (1997).
[11] Karafolas Simeon "The Greek Cooperative Credit System" Book Credit Cooperative Institutions in European Countries published by Springer, 111-126 (2016).
[12] Melese N.L "Determinants of Banks Liquidity: Empirical Evidence on Ethiopian Commercial Banks,” Journal of Economics and Sustainable Development, 6(15), 36-46 (2015).
[13] Niarchos. N, "Financial Analysis of Financial Statements,” Book Published by Ath. Stamoulis, Athens, Greece, (2004).
[14] Nguyen Tran Thai Ha, and Phan Gia Quyen, "The Impact of Funding Liquidity on Risk-taking Behaviour of Vietnamese Banks: Approaching by Z-Score Measure,” International Journal of Economics and Financial Issues, 8(3) (2018) 29-35.
[15] Petropoulos D, and Kyriazopoulos G, "Profitability, Efficiency and Liquidity of the Cooperative Banks in Greece" International Conference of Applied Economics ICOAE, (2010).
[16] www.este.gr
[17] https://www.financestrategists.com/accounting/financial-statements/dupont-analysis/

Keywords:

Cooperative Banks of Greece, Financial Analysis, Indicators, Banking Sector.