The Evaluation of Economic and Financial Stability of Saving Cooperative and Credit Union Cooperative in the Upper Northern Region by Using Camels Analysis

Abstract

This research aimed to investigate the application of the CAMELS Analysis framework in assessing the economic and financial stability of saving cooperative and credit union cooperative. It further sought to compare the financial conditions of saving cooperative and credit union cooperative in the Upper Northern region of Thailand using secondary data from these institutions between 2020 and 2022 among of sample is 515 area. Descriptive statistical analysis and t-tests were employed to analyze the data. The results revealed that, compared to the group's financial averages, savings cooperatives exhibited satisfactory levels of capital adequacy, asset quality, management efficiency, profitability, and liquidity. In contrast, credit union cooperatives demonstrated inadequate capital adequacy and profitability when benchmarked against the group averages. However, their asset quality, earnings capacity, and liquidity were deemed satisfactory. Overall, both types of cooperatives exhibited a generally positive trend.  A comparative analysis of 18 financial ratios across the five dimensions of the CAMELS framework indicated significant differences between saving cooperative and credit union cooperative for 13 of these ratios. This finding supports the research hypothesis that the economic and financial stability of saving cooperative and credit union cooperative differs significantly.