Christian Andrés Castro-Viteri, Henry Fabián Chango-Chango, Darwin Fernando Núñez-Collantes, Franqui Fernando Esparza Paz
Financial market concentration can affect competition, access to credit, and the performance of institutions that channel savings into productive activities, especially in areas where savings and credit cooperatives predominate. The objective of this study was to analyze the level of concentration in the financial system of Napo Province and its relationship to the profitability of cooperatives in the Popular and Solidarity Financial Sector. A quantitative approach was applied, with descriptive, correlational, and explanatory scope, using secondary data from the Superintendency of Popular and Solidarity Economy; 573 records were processed in RStudio, concentration indicators were calculated, and multiple linear regression models were estimated for ROA and ROE, taking into account the lending rate, delinquency, liquidity, and institutional size. The results showed that the lending rate did not have a significant relationship with ROA but did have a positive association with ROE; furthermore, delinquency had a negative effect in both models, while liquidity had a positive relationship. These findings demonstrate that profitability is influenced by multiple internal and financial factors. It is concluded that cooperative performance does not depend exclusively on interest rates, but also on portfolio quality, liquidity, and institutional management.