THE IMPACT OF FINANCIAL CRISIS ON CREDITCOOP PROFITABILITY

Due to the fact that consumption is an essential process in economy, everyone seeks for financial resources, which are necessary to satisfy different needs. Even though most of the time it is hard for someone to obtain financial resources, credit unions and cooperative banks help people to obtain liquidity in order to satisfy their needs. Of course, we know from the financial practice, that there are some periods of crisis when everyone needs financial resources, but all financial institutions become more aware of the assumed risk when, they lend money. During the financial crisis from 2008, banks as Lehman Brothers or Merrill Lynch have bankrupted, and many others recorded huge losses. So, through this paper we proposed to analyse the impact of financial crisis on CreditCoop profitability. Another reason for choosing this topic is the fact that co-operative banks are not a main subject for economic literature. This is an interesting subject for our study, because we are able to see if this type of business is risky or less riskier compared to a commercial bank business.