After CREA's Collapse, Most Cuenca Cooperatives Started 2026 in Strong Shape — Here's How to Check Yours

The CREA Shock Is Fading — But the Lesson Shouldn't

Seven months after the CREA savings and credit cooperative collapsed in Cuenca — leaving 281 families unable to recover roughly $31 million in deposits — the broader cooperative sector is showing signs of resilience.

According to recent regulatory data, most of Ecuador's large financial cooperatives started 2026 with healthy balance sheets, adequate capital reserves, and manageable loan portfolios.

That's good news. But it doesn't mean you should stop paying attention.

What the Data Shows

Following the CREA failure, Ecuador's Superintendency of Popular and Solidarity Economy (SEPS) increased its monitoring of cooperatives nationwide. The findings for the sector's major players have been reassuring:

• Capital adequacy ratios are above the legally required 9% minimum for most large cooperatives
• Liquidity ratios remain healthy, meaning cooperatives can meet withdrawal demands
• Non-performing loan rates are within acceptable ranges

This contrasts sharply with CREA, whose solvency ratio had plunged to just 3.36% before it was shut down — far below the 9% requirement.

Cooperatives Expats Commonly Use in Cuenca

Here are the major cooperatives where expats in Cuenca typically hold accounts:

Cooperative	Segment	Notes
JEP	Segment 1 (largest)	Ecuador's largest cooperative; 1.5M+ members
Jardín Azuayo	Segment 1	Azuay-based; popular with Cuenca residents
CAJA	Segment 1	Cuenca headquarters; strong regional presence
Juventud Ecuatoriana Progresista	Segment 1	Same as JEP (full name)
Mushuc Runa	Segment 1	Indigenous cooperative; growing presence

Segment 1 cooperatives are the largest and most heavily regulated. They face the same capital requirements and reporting obligations as commercial banks.

How to Check Your Cooperative's Health

You don't have to take anyone's word for it. Here's how to verify:

1. Check SEPS filings

• Visit seps.gob.ec and search for your cooperative
• Look at the most recent financial statements (estados financieros)
• Key numbers: solvency ratio (should be >9%), liquidity ratio, loan delinquency rate

2. Ask directly

• Walk into your cooperative branch and ask for their latest informe financiero
• They are required to provide this information to members
• If they refuse or can't produce current numbers, that's a red flag

3. Watch for warning signs

• Sudden changes in interest rates (especially unusually high rates to attract deposits)
• Difficulty processing withdrawals or unusual delays
• Management turnover or regulatory actions in the news
• Missing or delayed publication of financial reports

The $32,000 Insurance Question

Ecuador's COSEDE (Deposit Insurance Corporation) insures deposits at cooperatives up to approximately $32,000 per institution, per depositor. This is the same agency that paid out 99% of CREA depositors.

The key word is per institution. If you have more than $32,000 you want insured, you should spread it across multiple cooperatives or banks. Each institution's $32,000 limit is separate.

Example:

• $30,000 at JEP = fully insured
• $30,000 at Jardín Azuayo = fully insured
• $60,000 at JEP = only $32,000 insured; $28,000 at risk

Cooperatives vs. Banks: A Quick Comparison

	Cooperatives	Banks
Interest on savings	Higher (often 5-8%)	Lower (1-3%)
Deposit insurance	$32,000 (COSEDE)	$32,000 (COSEDE)
Regulation	SEPS	Superintendency of Banks
Account opening	Often easier for foreigners	More documentation required
Risk	Slightly higher	Lower (generally)
Branches in Cuenca	Many	Fewer options

What We Learned From CREA

The CREA collapse taught several concrete lessons:

• Don't exceed the insurance limit at any single institution
• High interest rates can signal desperation, not generosity
• "99% paid" means nothing if you're in the 1%
• Diversify — just like investments, don't put all your savings in one place
• Check financials annually — even if everything seems fine

Bottom Line

The cooperative sector in Cuenca is largely healthy as of early 2026. The major players — JEP, Jardín Azuayo, CAJA — entered the year in solid financial shape. But the CREA collapse proved that no institution is too familiar to fail.

Keep your deposits within the $32,000 insurance limit per institution, check the financials once a year, and pay attention if something feels off. That's the playbook.

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Sources: CuencaHighLife, SEPS, COSEDE