Cooperative Credit Unions Research Articles

Do Cooperative credit unions reduce or increase poverty in Cameroon?

AbstractPurposeThis study looks at whether credit unions, a type of microfinance, increase or decrease poverty in Cameroon from 2004 Q1 to 2021 Q4.Method/designThe fully modified ordinary least square, dynamic ordinary least square, and conical co‐integration is applied.FindingsThe findings reveal a long‐term association between credit union measures and poverty levels. The results indicate that the number of credit unions, the number of commercial bank branches, and credit to the private sector negatively relate to poverty levels. This implies that as the number of credit unions increases, the poverty level increases as the credit unions tend to exploit the poor population. Outstanding deposits positively impact poverty levels, which imply that members’ deposits alleviate poverty.Research implicationsThe government should refurbish the existing programs to enhance credit unions' activities to focus more on banking the poor population especially in remote areas. The credit unions should increase deposit mobilization from the public to empower individuals and businesses. The government should regulate the number of credit unions being created to limit exploitation. The government should intervene to ensure that credit unions’ policy regarding lending, interest rates, and loan recovery procedures are mutually agreed upon by the parties.Originality/noveltyLimited studies used secondary data focusing on credit unions. The studies give conflicting results: Some studies reveal that microfinance banks positively affect poverty reduction. Some indicate negative effects of microfinance on poverty reduction. Others show that microfinance institutions do not significantly influence poverty reduction. Different opinions exist among depositors and borrowers of credit unions concerning poverty alleviation. Some credit union members hold that credit unions increase poverty, while others argue that credit unions alleviate poverty.

The Management Guidelines to Strengthen the Education and Knowledge of Members of a Cooperative Credit Union in South Thailand

The aim of this paper is to study the key points of managing cooperative credit unions in south Thailand and how to strengthen the education and knowledge of the management team, staff and members. This paper is based on a qualitative method via in-depth interviews and a focus group with members and committees of cooperative credit unions in south Thailand; data were analyzed using content and descriptive analysis. Results showed that the most problematic issue is a lack of transparency in the management and patronage systems, leading to corruption. In addition, the key points for developing guidelines for this type of credit union include members’ understanding and knowledge about the objectives of the cooperative system; updated regulations and legal measures concerning a deposit protection system; revised rules and regulations for loan policies, human resources, and information technology; government policies for strengthening cooperative credit unions; and allocating more budget to educate their staff and members, such as a training course and a visit to another cooperative credit union. In addition, the Cooperative Promotion Department and Cooperative Auditing Department of Thailand should improve the law and auditing method to strengthen and clarify the organization’s operations.

CULEG PERSPECTIVE: PERFORMANCE OF CREDIT UNION COOPERATIVES FEDERATION PUSKOPCUINA

Purpose – This Study aim to test governance variables based on perspective Credit Union Label of Excellence in Governance (CULEG) is governance standards and instruments _measurement Cooperative Credit Union developed by the Asian Confederation of Credit Union (ACCU) for made guidelines for creation score for its members and community the place they operate to CU performance.
 Design/methodology/approach – Using deep CU sample data scope puskopditcuina in Indonesia, research this prove exists impact application of CULEG to Performance.
 Findings – Participation influential, and transparency negative and significant to performance cooperative Credit Unions in federation Puskopcuina. Honor Rules, Policies, and Regulations (principle compliance) effect significant and positive to performance cooperative Credit Unions.
 Originality – Using deep CU sample data scope puskopditcuina in Indonesia, research this prove exists impact application of CULEG to Performance.
 Keywords: CULEG Perspective, Credit Union, Federation
 Paper Type Research Result

Assessing Budgeting and Budgetary Control Effectiveness of Credit Unions in the Upper West Region of Ghana

Despite the significant role played by Budgeting and Budgetary Control in aiding organizational success, many Credit Unions (CUs) within the upper west region of Ghana have neglected this important performance management mechanism. Considering the significant role played by Credit Unions in Ghana in supporting micro and small scale enterprises and agriculture against the backdrop of high mortality rate of Credit Unions in the Upper West Region (where the first Credit Union in Africa was formed) it is important to consider if budgeting and budgetary control functions are being efficiently discharged. The main objective of the study was to identify whether any relationship exist between budgeting and budgetary control on one hand and financial performance on the other hand, of Credit Unions in the upper west region of Ghana. The study used the descriptive and correlational research methods targeting the entire population of eight (8) Credit Unions registered with the Department of Co-operatives and affiliated to Ghana Co-operative Credit Unions Association Limited (CUA). The census survey method was employed due to the small population size and purposive sampling was used to select the study respondents due to the technical nature of the subject and a regression model adopted to determine the association between dependent and independent variables. The study found that financial performance is significantly influenced by the budgeting and budgetary control practices of Credit Unions in the Upper West Region. It was also revealed by the study that the extent of use of good budgeting and budgetary control practices including formal budget planning, use of excel/software, punishments/reward, budget participation, flexibility, zero-base budgeting and budget comprehensiveness was very low among Credit Unions. Those directly responsible for the proper preparing and execution of the budget should be properly trained to equip them with the knowledge and skills to do and better job including the adoption of better budgeting and budgetary control practices to help improve financial performance of Credit Unions. Keywords: Budget, Budgetary Control, Return on Assets, Permanent Income Hypothesis, Effectiveness, Organisational Performance DOI: 10.7176/RJFA/11-12-01 Publication date: June 30th 2020

Financial institution ties and survival of small commercial poultry farms (SCPFs) in Ghana

PurposeThe purpose of this study was to understand the usefulness of financial institution class ties in small commercial poultry farms’ (SCPFs’) survival in Ghana.Design/methodology/approachThe study uses data from a network survey with associated attribute data on poultry small- and medium-sized enterprises. The data were collected in two waves between January 2014 and March 2015. Survival is estimated using a lagged probit model.FindingsIt was found that the survival rate of SCPFs is influenced by ties to universal banks and cooperative credit unions that have a positive effect while those with ties to savings and loans companies have a reduced survival probability.Originality/valueThe findings of the study make a significant contribution to the agricultural enterprise financing literature showing the relevance of the different financial institution types in the continued survival of agricultural SCPFs.

Aktualne zagrożenia stabilności systemu finansowego w Polsce

The stability of financial system is a major component of the economic securityof a state. An active role of state has a significant impact on ensuring the stabilityof financial system. The most important component of ensuring stability ofa financial system is to maintain stability of the banking sector. Stability of financialsystem is necessary for both the economy as a whole, individual sectors andall stakeholders, including individuals as it is a public good. Although the Polishfinancial system is now stable, three recent incidents need detailed examination:operations and the collapse of investment firm Amber Gold, instability on themortgage loans (denominated in Swiss Franc) market and the restructuring ofthe cooperative credit unions. From the financial point of view, the importance ofthese phenomena is marginal but from the public interest point of view it is vital.Therefore, there is a need to study "hybrid" dangers present in the framework ofthe financial system in Poland and to establish the Council on Systemic Risks aswell as to introduce new regulations to ensure safety of deposits. It is also necessaryto educate public about functioning of the financial market.

PROBLEMS OF CREDIT AND COOPERATIVE SECTOR DEVELOPMENT IN UKRAINE

In the article the current state and characteristics of the cooperative credit sector of Ukraine is researched. It was revealed that inadequate state regulation of not only the financial sector of the economy in general, but also credit cooperative sector in particular had caused a number of problems that hinder their effective activities. The main of these problems are constantly changing legal framework and institutional inability to regulate credit unions. The main consequence of this situation is the emergence of pseudo unions (and loss of public confidence in the credit cooperative as a form of mutual and self help), reducing the effectiveness of their activities’ regulation. Taking into account the experience of foreign countries in the regulation of credit cooperative sector (namely in terms of creating the proper regulatory framework and institutional environment for credit unions functioning), the introduction of credit unions’ sector Self- Regulating Organization was proposed. It must unite the representatives of the state regulator and the market as well as fulfill a highly important in modern conditions of Ukrainian economy development indirect supervision function, which will significantly reduce the risks, contribute to strengthening and maintaining liquidity. Over the long term this will ensure the stability of the system of credit cooperatives in Ukraine. The study aims to identify current problems of cooperative credit unions in Ukraine and develop proposals for their solution. The subject of work: the causes of emergence and the role of government in providing legal environment to solve them. In research process the following methods of research were used: analysis and synthesis, comparison, historical and logical method. The main result is the development of approaches to optimize the measures of state regulation of national economy credit cooperative sector. The results obtained might be used in development of legislative reforms aimed at the regulation of financial institutions in Ukraine, as well as implementing credit unions' sector Self- Regulating Organization.

Assessing Small and Medium Forest Enterprises' Access to Microfinance: Case Studies from The Gambia

Small and medium forest enterprises (SMFEs) are commonplace in many developing economies. SMFEs often face several challenges, with access to finance frequently being cited as a key hurdle. This study aimed to evaluate the access that SMFEs in The Gambia have to microfinance, and to determine strategies for improving the delivery of these services. Data show that most SMFEs have decent access to deposit accounts, but limited access to credit. While cooperative credit unions and other non-financial institutions have been providing microloans to SMFEs, access to such financial services could be improved. Six strategies to do so are proposed.

Local Economic Development and Cooperative Credit Unions in modern Japan

Local Economic Development and Cooperative Credit Unions in modern Japan

The Impact of Women Members and Employees on the Severity of Agency Conflicts in Philippine Cooperative Credit Unions

This paper evaluates the performance of the Philippine cooperative credit unions (CCUs) from 1986 to 1999, using stochastic frontier analysis, focusing particularly on the impact of women members and administrators on the quality of governance of the CCUs. The general trend of the efficiency estimates shows an improving cost-efficiency accompanied by a fairly stable but declining profit-efficiency of the CCUs. Specifically, the result shows that only about 2% of costs are wasted, on average, relative to a best-practice firm facing the same conditions. Meanwhile, the mean profit estimates for the 14-year period is 92%. Credit cooperatives with a greater number of women employees are more cost- and profit-efficient. However, the dominance of women as members incurs more cost and thus less profit. This raises the issue of having MFIs targeting only women as well as the concern for higher monitoring costs for them, which imply higher total costs and less profits.

From tackling poverty to achieving financial inclusion—The changing role of British credit unions in low income communities

This paper offers an analysis of the changing role of co-operative credit unions in tackling poverty and promoting financial inclusion in Britain. It examines the reality of poverty in low income communities and endeavours to critique the actions, methodologies and initiatives currently being adopted by credit unions to achieve financial inclusion. It examines the role of the UK government in its support for credit unions and offers an early analysis of HM Treasury's Financial Inclusion Fund. The paper argues that credit unions are best placed within the financial services industry to make an impact within financially excluded communities.

An appraisal of the status of savings management through cooperative credit unions in Lesotho

The findings of this study are based on credit‐supply operations of cooperative credit unions in ten administrative districts of Lesotho for the period 1982–92. The credit‐extension activities of the cooperative credit unions were appraised by statistically analysing the loans these institutions have extended to their members over the study period. The response of loans granted to members’ share deposits, outstanding loans, selected macroeconomic variables, number of credit unions, membership and value of assets was also statistically appraised. The results displayed a significant correlation between loans granted to members, their share deposits, the number of cooperative credit unions, membership, value of assets and outstanding loan balance. At the macroeconomic level, loans granted to members in any given year showed a significant correlation with the interest rate on savings, GNP per capita, salary remittances from migrant workers, and the prime lending interest rate of commercial banks. The amount o...

Rural Cooperative Credit Unions

Rural Cooperative Credit Unions