Determinants of Bank's Stability. Evidence from CreditCoop

Our previous research focused in finding the determinants of bank's profitability and stability by taking into account only consolidated data. Having updated information, we are able through this paper to identify the main determinants of a CreditCoop's stability by taking into account more specific data for each county, in order to see if county's economic characteristics influence the stability of CreditCoop subsidiaries. As far as we know, this is the first study in the literature which will try to analyze the financial stability of a bank, taking into account each subsidiaries from all regions. This topic is worth to be analyzed, because we will be able to identify two main things: which are the most important determinants of subsidiary's stability, and the second we will be able to point the most stable/unstable, respectively profitable/unprofitable regions where the bank can expand the activity, or the contrary to reduce the activity, by taking some restrictive measures. All this financial stability affects in the end the profitability of CreditCoop, the main driver of each economic activity.