Comparison of the financial strength of savings and loan cooperatives and banks in Mexico

Abstract

The objective of the research is to compare and determine the impact of the COVID-19 health crisis on the financial strength of the Savings and Loan Cooperative Societies and Banks of Mexico. To do this, the volatility of six financial variables was examined through GARCH models. The results indicate that the pandemic affected both institutions in four variables. Likewise,
it is determined that cooperatives have less volatility in four of the six variables examined. However, it is concluded that cooperatives are more protected compared to banks.