Abstract
This study aimed to assess role and determinants of saving and credit cooperative on financial intermediation in Hadiya Zone, in case of Lemo woreda and Hosanna town administrative. The main target of this study was in order to assess role of saving and credit cooperatives for their members in financial intermediation and to examine main determinants of saving and credit cooperatives activities on financial intermediation. Both primary and secondary data were used, the primary data was collected through structured questionnaire based on 156 members’ respondents of cooperative and 156 respondents from saving and credit cooperative total 312 respondents from both Lemo Woreda and Hosanna town. Secondary data were collected from all saving and credit cooperatives and other relevant organizations those from Lemo woreda and Hadiya zone cooperative and marketing organization. Data analysis is carried out with the help of various descriptive and econometric techniques that logit model. Descriptive method was employed to assess role of saving and credit cooperatives in financial intermediation and logit model were employed to identify determinants that influence their financial intermediation role on members. Analysis result implies that saving and credit cooperatives have significant role on their member’s resource mobilization or to enhance saving culture, creating credit provision on moderate financial intermediation. In case of factors that determine financial intermediation of cooperatives member’s participation on cooperatives, different training especially for cooperative administrative, sufficient supervision and audit system, and political disturbance or intervention on their objectives significantly influence financial intermediation performance. Keywords : Cooperative, Financial intermediation, Saving, Credit, Logit. DOI: 10.7176/RJFA/11-23-04 Publication date: December 31 st 2020
Highlights
CHAPTER ONE: INTRODUCTION Savings and credit cooperative societies (SACCOs) in the world can be traced based on two origin of modern cooperation
On the other had a significant majority 30(19%) of the respondent of SACCOs members had been in their respective SACCOs for less than 5 years with 84(54%) have been members for a period of between 5-10 years, 25(17%) have been 11-15 years, whereas 11(7%) had been in the organizations for more than 15 years
3.5 CONCLUSIONS AND RECOMMENDATION The chapter looks at the conclusions drawn from the research, comparison to what other scholars say as noted under literature review and what recommendations the study has come up with in the role and determinants of savings and credit cooperative societies (SACCO’s) in financial intermediation
Summary
CHAPTER ONE: INTRODUCTION Savings and credit cooperative societies (SACCOs) in the world can be traced based on two origin of modern cooperation. During regime (1974-1991), different types of cooperative societies (Agricultural Cooperatives, Housing Cooperatives, Saving and Credit Cooperatives and Mining Cooperatives) were organized, promoted, regulated and inspected by different ministries and institutions (Muluneh, 2012). Through in this time, cooperatives were mainly organized to transform rural economy to the socialist style rather than benefiting their members. Low income countries face especially threatening challenges that usually the weaker sections of the societies are completely ignored by the formal financial institution in the race of making pieces of profits or the complexities involved in providing finance to the weaker section (Sharma and Kukreja, 2013; World Bank, 2013). Currently some formal financial institution contributing good role and reduce exclusion of low income households from formal financial institution by playing as financial intermediation
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