Role Of Savings Research Articles

The Role of Savings and Credit Cooperative Societies in Financially Supporting Employed Women in Dar es Salaam, Tanzania: A Case Study of CRDB Workers SACCOS

Savings and Credit Cooperative Societies (SACCOS) are financial cooperatives that aim to meet the financial needs of different population segments, including women, men, or other specified categories. The primary role of these financial institutions is to improve the socio-economic development of their registered members and the community at large. The aim of this study was to determine the effects of SACCOS on women's financial accessibility, specifically focusing on those working with the Cooperative Rural Development Bank (CRDB) in Dar es Salaam. The research was grounded in Agency Theory and Stakeholder Theory. A descriptive research design was employed, and quantitative analysis was performed. A sample of 80 respondents was randomly selected from a population of 1,700 members of the CRDB workers’ SACCOs. The study utilized observation, surveys, and questionnaires. Secondary data sources included newspapers, journal articles, books, SACCO manuals, and authoritative internet sources. Simple descriptive methods were used to present the study's results, while percentages were used to highlight numerical patterns. Quantitative data was analyzed using Excel. The results showed that over 77% of SACCO's female members experienced better socio-economic conditions compared to non-members. The study recognized that quick access to finance through SACCO services significantly improved the standard of living, particularly for women. Although these women work with the bank, SACCO services have enabled them to access more finance than they would typically qualify for through the bank. However, SACCOs face several constraints, including poor management, lack of training opportunities for members, high-interest rates, and societal perceptions of women (segregation). These factors have presented challenges to the performance of SACCOs. The study recommends that members receive training on how to improve the performance of SACCOs to better leverage the services provided. In general, the government should amend and enforce policies related to governance, financial management, and the proper management of accounting and strategies that strengthen SACCOs. This would enhance their ability to support women’s access to finance, leading to improved socio-economic development.

The Role of Savings and Loan Cooperatives in the Development of Micro, Small, and Medium Enterprises (MSMEs)

The aim of this research is to identify the role of the Sibotolungun Savings and Loans Cooperative (KSP) in the development of Micro, Small and Medium Enterprises (MSMEs) in Medan Barat District and to determine the efforts of the Sibotolungun Savings and Loans Cooperative (KSP) in empowering the community economy in Medan Barat District . This research was conducted using qualitative analysis methods with data collection techniques through observation, interviews and documentation. The number of informants involved in this research was 4 people consisting of 1 KSP Sibotolungun employee and 3 MSME entrepreneurs. The results of this research show that: 1). The Sibotolungun Savings and Loans Cooperative (KSP) acts as a provider of capital financing for MSMEs, which contributes to economic growth and as an alternative savings institution other than banks. 2) KSP Sibotolungun’s Efforts to empower the community’s economy are carried out through providing counseling and Assistance to increase sales, so that entrepreneurs can remain competitive in the market.

Shaping entrepreneurship in developing countries: the role of savings and credit groups

ABSTRACT In this study, we analyse savings and credit groups (SCGs) to investigate whether belonging to these groups contributes favourably to entrepreneurship. SCGs are community-based groups that represent a form of informal finance in developing countries. For the analysis, we adopt the social embeddedness theory, and test our hypotheses on a unique sample of respondents to a survey in Kenya finding a positive relationship between SCGs and the creation of new ventures. The results show that the levels of education and wealth are positively associated with the likelihood of creating a new venture, but SCG membership negatively moderates these relationships. Thus, the benefits of SCG membership are larger for less-educated and less-wealthy individuals that can offset, at least in part, the disadvantages related to these low levels. Finally, to provide insights for future research and policy, we focus on the group characteristics associated with the likelihood of creating new ventures.

Level of Education and Savings Mobilization among Women Groups in Kisii County, Kenya

Investments by firms ultimately benefit the nation through higher productivity and economic growth. The role of savings in investment and, therefore, in the development of a country cannot be exaggerated. In developing countries like Kenya, most of the savings are done by households. High savings can also hedge countries against economic downturns and financial crises. One of the avenues to boost national savings is by encouraging individuals to increase personal savings. In this study, the behavior of women savings in Voluntary Saving Groups, which are self-help women groups in Kisii county, was examined. The purpose of this study was to find out whether the level of education can influence savings mobilization among self-help women groups in Kisii County for economic growth in Kenya. The study was guided by psychological and sociological theories, which propose that an individual's changes in resources over time and the influence of education, among other factors, have an influence on savings. The study will be beneficial to groups on savings as well as policymakers who come up with regulations concerning savings through groups. The study used the descriptive survey design and the target population was 1,482 group members of the various self-help women groups in Kisii County, from which a sample of 165 was obtained. The study revealed that the level of education is a serious contributor to saving decisions among women in self-help groups, thereby influencing savings mobilization among themselves.

The Role of PKK Saving Loan Against Community Economic Empowerment Malang City

PKK savings and loans activities are an activity that flows from members' deposits or commonly called savings and money from member deposits will be turned into loans for members. The purpose of holding this savings and loans activity is to assist the community in flowing unused funds and assist the community in meeting the needs of the pressed or who are dependent on loan shark debt. In order to get deeper results, this study used the descriptive method of qualityf. Family Empowerment and Welfare or PKK rt 4 is located in rt 4 rw 12 Purwodadi village, Blimbing district, Malang City. The purpose of PKK rt 4 in the role of savings and loans is to reduce the community's dependence on loan sharks and provide business capital to small sector businesses that are still in the context of rt 4. The role of Savings and Loans in community economic empowerment, especially in reducing dependence on loan sharks, has been going well so some members have switched because the interest is lower than loan sharks and the interest itself will be distributed thoroughly to members in the form of Residual Business Results (SHU) at the end of the period.

The Role of Savings and Income Diversification in Households’ Resilience Strategies: Evidence from Rural Vietnam

Understanding households’ resilience-building strategies is vital for the domains of humanitarian assistance, economic development, and poverty reduction, especially in the places where are vulnerable to shocks. In this study, we offer the first trial that takes into account the correlation between households’ risk attitude and their resilience-building strategies, namely savings as an absorptive capacity and income diversification as an adaptive capacity. We examine the effects of these resilience strategies on reducing the impacts of shocks and poverty. We use a panel data of 1227 identical households for Vietnam in two waves of the Thailand–Vietnam Socio-Economic Panel project to investigate the above issues. We address the endogenous problems of households’ risk attitude, savings, and income diversification. Our results show that more risk-averse households tend to save more and diversify their income portfolios. These precautionary strategies to build up their resilience capacity help prevent them from reducing consumption caused by shocks and from falling into poverty in absolute, relative, and multidimensional measures. We suggest that rural development policies in developing countries should focus on facilitating more income generation and employment opportunities. Furthermore, the development of rural education and infrastructure for information and communication technology should be taken into account of designing poverty reduction programs.

Sustainable finance: The role of savings and credit cooperatives in Ecuador

AbstractThe current world situation leads us to consider that sustainable development needs to be a global priority to ensure the future of the planet and improve the quality of life. There is a need for sustainable finance to support this. Savings and credit cooperatives could help to achieve this impact as they serve the microfinance and microlending market. They facilitate the financial inclusion of the most vulnerable people, most of whom live in rural areas and are members of organizations, such as agricultural cooperatives and associations. Previous studies have focused exclusively on overall profitability, so this paper contributes to extending the literature by analyzing the whole population of savings and credit cooperatives in Ecuador (510 institutions), focusing on their profitability in two ways: the overall profitability necessary for the viability of the business and, in addition, the microcredit portfolio profitability, as a specific measure of its contribution to sustainability and social value creation. Another novelty is that the analysis has been carried out using several machine learning techniques for the wider generalization of the results. These show that size is the most relevant variable for predicting the ROE and that the microcredit portfolio profitability is conditioned by the credit variables.

SOSIALISASI PERAN KOPERASI SIMPAN PINJAM CU DHARMA BAKTI TERHADAP PEMBERDAYAAN MASYARAKAT

Socialization is a lifelong process that is concerned with how individuals learn things, such as social norms and values. Socializing requires the activeness of each individual to want to join in a community or community group. This activity can be obtained through the process of learning and adjustment. Therefore, individuals must actively learn from their surroundings. Community empowerment activities are one of the most effective activities in the context of self-reliance and empowerment of the community. These activities can be done anywhere, anytime and by anyone. Basically community empowerment activities are aimed at those who are economically disadvantaged and not yet independent. Through cooperatives, young people should spearhead the Indonesian nation's entrepreneurship development movement so that every community has entrepreneurial skills. Entrepreneurial skills are ultimately expected to free the Indonesian nation from the shackles of poverty. The purpose of the researchers to examine the socialization of the role of community empowerment itself is so that we can find out the role of savings and loan cooperatives in empowering Indonesian society. This study uses qualitative methods, namely observation and interviews in order to see the extent to which savings and loan cooperatives have succeeded in empowering the community's economy.
 The results of the study show that the Dharma Bakti CU savings and loan cooperative has a very large role in participating and supporting the development and development of the community's economy. The empowerment program provided by the cooperative to the community is able to help them develop their business.

The role of Savings and Internal Lending Communities (SILCs) in improving community-level household wealth, financial preparedness for birth, and utilization of reproductive health services in rural Zambia: a secondary analysis

BackgroundSavings and Internal Lending Communities (SILCs) are a type of informal microfinance mechanism widely adapted in Zambia. The benefits of SILCs paired with other interventions have been studied in many countries. However, limited studies have examined SILCs in the context of maternal health. This study examined the association between having access to SILCs and: 1) household wealth, 2) financial preparedness for birth, and 3) utilization of various reproductive health services (RHSs).MethodsSecondary analysis was conducted on baseline and endline household survey data collected as part of a Maternity Waiting Home (MWH) intervention trial in 20 rural communities across seven districts of Zambia. Data from 4711 women who gave birth in the previous year (baseline: 2381 endline: 2330) were analyzed. The data were stratified into three community groups (CGs): CG1) communities with neither MWH nor SILC, CG2) communities with only MWH, and CG3) communities with both MWH and SILC. To capture the community level changes with the exposure to SILCs, different women were randomly selected from each of the communities for baseline and endline data, rather than same women being surveyed two times. Interaction effect of CG and timepoint on the outcome variables – household wealth, saving for birth, antenatal care visits, postnatal care visits, MWH utilization, health facility based delivery, and skilled provider assisted delivery – were examined.ResultsInteraction effect of CGs and timepoint were significantly associated only with MWH utilization, health facility delivery, and skilled provider delivery. Compared to women from CG3, women from CG1 had lower odds of utilizing MWHs and delivering at health facility at endline. Additionally, women from CG1 and women from CG2 had lower odds of delivering with a skilled provider compared to women from CG3.ConclusionAccess to SILCs was associated with increased MWH use and health facility delivery when MWHs were available. Furthermore, access to SILCs was associated with increased skilled provider delivery regardless of the availability of MWH. Future studies should explore the roles of SILCs in improving the continuity of reproductive health services.Trial registrationNCT02620436.

The role of savings in achieving human capital development in resource-rich countries

This paper examined the impact of savings on human capital development in Nigeria (resource rich-country) from 1981- 2020. Using Autoregressive Moving Average (ARMA) model, the results indicate that the estimated parameters on gross savings (GSA), official development assistance (ODA), and democracy (DEM) are statistically significantly different from zero with the expected signs except that of GSA. The slope coefficient for GSA is surprisingly negative (despite Nigeria’s oil wealth) and implies that a percentage increase in the gross saving (GSA) will translate into a decrease in the level of human capital development. The possible reasons behind the negative impact of savings on human capital development could be that past governments did not effectively manage the country’s oil wealth, thus leading to low savings which culminated in under-investment in human capital development. As such, Nigeria still grades among the poorest and most miserable in the world in terms of the human development index. Keywords: Autoregressive Moving Average (ARMA) model; human capital development; Nigeria; resource rich-country.

Factors determining household savings in Zambia: A logit regression model from the micro-economic perspective

Although not directly linked in time and space, the low savings in an economy will pose a huge challenge on the growth prospect of the country as both private and public savings remain catalytic to economic growth. The classical and neo-classical growth theories have placed emphasis on the critical role of savings in the economy and indeed the need for high savings cannot be overemphasised. This study sought to examine microeconomic determinants of household savings in Zambia using cross sectional data obtained from the Central Statistics Office 2015 Living Condition Monitoring Survey comprising 12251 households. The study conducted an analysis of factors using a Logistic regression model. The results of the study found that income and employment status of the households had a positive and significant influence on the probability of a household to save. On the other hand, household size, age and region (living in urban areas) negatively influenced household savings and was significant at all critical levels. The marginal effects which measures the magnitude of the impact of the independent variable on the independent variable was analyzed and it was found that for income ceteris paribus, a 1% increase in income was found to increase the probability of a household to save by 0.01percentage point while an improvement in employment of household heads increases the probability of a household to save by5.6 percentage point ceteris paribus. Furthermore, ceteris paribus, an additional year of the household head age reduces the likelihood to save by 1.4 percentage point. On the basis of household size, the study found that ceteris paribus, adding an extra person to a given household reduces the likelihood of a household to save by 1.14 percentage point. For the region variable, the study used rural region as a benchmark region to distinguish between urban and rural household propensity to save. It was found that households that were located in urban areas were 9.8% less likely to save compared to households located in rural areas. Given the findings above, it was concluded that low levels of savings in Zambia are attributed to; low household incomes, overgrowing informal sector and overpopulated households. It was recommended that the government should increase its funding towards economic empowerment to boost job creation which would enhance household income and reduce over dependency of household members.

ЗАОЩАДЖЕННЯ ТА ІНВЕСТИЦІЇ В ТЕОРІЇ ЕКОНОМІЧНОГО РОСТУ

The article is devoted to the research of the place of savings and investments in stimulating economic growth from the stand-point of economic theory, taking into account economic realities and prospects of developed society. The role of savings and in-vestment in the theory of economic growth is defined, in particular, it is emphasized that the role of investment in the short term is to stimulate production through the impact on aggregate demand, and long-term – to impact on economic growth through gross fixed capital formation. It is identified that the accumulation of social capital is formed mainly through investment, then for the economy are important general economic savings, which are a source of investment. Thus, investment is a connecting element, which with the involvement of the labor force ensures the transformation of national savings into a major source of economic growth.It is found that the representatives of the leading directions of political economy emphasize two aspects of the problem of accumulation: demand for capital goods and supply of capital goods; matching savings and investments. It is established that the imbalance in these aspects causes market imbalance. It is generalized that the accumulation of capital is inextricably linked with the formation of savings and investments, which through the prism of the abstract-logical approach determine the macroeconomic balance, in ensure the stability of supply and demand for public goods. It is catch out that the savings that turn into the form of investment are the basis of economic growth, which is determined by the size and structure of investment, qual-ity and speed of their implementation.It is revealed that nowadays a number of factors depend on the possibility of converting savings into investments, such as: wages, employment, interest rates, scientific and technical progress, foreign trade, capital armament, public policy, public institutions, development of financial and economic sectors and their ratios, virtualization of economy and globalization processes. Taking these factors into account should be key in shaping economic policies aimed at stimulating investment and economic growth.

Study on the Poverty of Traditional Fishermen in Lombonga Village, Balaesang District, Donggala Regency

This study examines how the socio-economic life of traditional fishing communities in Lombonga Village, Balaesang District, Donggala Regency. This study aims to determine how the socio-economic conditions of the traditional fishing community in Lombonga Village, Balaesang District, Donggala Regency. To identify the problem, the researcher used the qualitative method in analyzing the problem. Data collection techniques used in this study were through observation, interviews, and documentation. While the data analysis technique used in this study is through data reduction, data presentation, and verification of concluding. Based on the results of the study, the socio-economic life of the traditional fishing community in Lombonga Village, Balaesang District, Donggala Regency is still below the average standard of living of other communities, this is due to the limited facilities and infrastructure owned and also supported by low human resources and fishermen's interest in middlemen. still very high. The income obtained by fishermen is less than optimal in meeting their daily needs, to overcome the economic downturn of traditional fishing communities, it is necessary to reactivate fish auctions and the role of savings and loan cooperatives is needed so that they can provide adequate capital assistance and the distribution of assistance can reach all existing fishermen. It is hoped that with the existence of a fish auction place and the role of savings and loan cooperatives, fishermen can escape from the snares of existing middlemen.

Role of Savings and Internal Lending Communities (SILCs) in improving household wealth and financial preparedness for birth in rural Zambia.

Savings and Internal Lending Communities (SILCs) are a type of informal microfinance mechanism adapted in many low- and middle-income countries (LMICs) to improve financial resources for poor and rural communities. Although SILCs are often paired with other health and non-health-related interventions, few studies have examined SILCs in the context of maternal health. This study examined the association between SILC participation, household wealth and financial preparedness for birth. The study also examined the association between sex and financial preparedness for birth. A secondary analysis was conducted on individual survey data collected from SILC participants in two rural districts of Zambia between October 2017 and February 2018. A convenience sample of 600 participants (Lundazi: n = 297; Mansa: n = 303) was analysed. Descriptive analyses were run to examine SILC participation and household wealth. Multiple binary logistic regression models were fit to assess the unadjusted and adjusted relationship between (1) SILC participation and household wealth, (2) SILC participation and financial preparedness for birth and (3) sex and financial preparedness for birth. The results show that SILC participation led to an average increase of 7.32 items of the 13 household wealth items. SILC participants who had their most recent childbirth after joining SILCs were more likely to be financially prepared for birth [adjusted odds ratio (AOR): 2.99; 95% confidence interval (95% CI): 1.70-5.26; P < 0.001] than participants who had their most recent childbirth before joining SILCs. Females were more likely to be financially prepared for birth than males if they had their most recent birth before joining an SILC (AOR: 1.79; 95% CI: 1.16-2.66; P < 0.01). SILC participation is shown to increase household wealth and financial preparedness for birth for both men and women. SILCs are a promising intervention that can help poor and rural populations by increasing financial resources and financially preparing parents for birth.

ЗАОЩАДЖЕННЯ ДОМОГОСПОДАРСТВ ЯК ЧИННИК СТІЙКОСТІ ЕКОНОМІКИ ДЕРЖАВИ

The household savings was, and still remains, the object of research by foreign and local scientists. However, despite the large number of research, there is a need for a more detailed consideration of the household savings in modern realities and review of factors that influence it. In circular flow of income, households act rationally, they do not spend all their in-come on consumption, which is why part of their income they save. The household invests a certain part of its savings in fi-nancial assets, which are transformed into investments of the real sector of the economy, which stimulates the financial and credit system. Currently, the consequence of Ukraine's state policy is the lack of sustainable economic growth, which affects the income of its citizens. Therefore, the analysis of the current state of household savings is necessary to prevent stagnation of the economy in the country. The objective of the article is to summarize economists’ views of on the definition of "savings"; finding out the main motives for savings; the role of savings in money turnover and their forms of placement; research of the current state and analysis of the dynamics of savings in household incomes; finding solutions to increase savings among households. The theory of savings has been studied since the beginning of economics, and authors from different schools have interpreted the concept of "savings" in their own way. The motivation to save is a motive, the main typology was pro-posed by John Maynard Keynes, but now behavioral economics has provided new concepts to address this issue. When con-verting savings into a financial asset, it can lead to an increase in GDP. At the present stage, the saving behavior of Ukraini-an households is insufficient, mainly due to public distrust in financial institutions and the development of the shadow economy (expenditures exceed incomes). To increase the level of savings among households, the authors present the follow-ing main proposals: providing more reliable protection for clients of financial institutions; developing financial literacy among all segments of the population; developing a concept to promote socially desirable behavior

Financial inclusion dynamics in Southeast Asia: An empirical investigation on three countries

AbstractThis paper examines the determinants of financial inclusion in Vietnam, Indonesia, and the Philippines (VIP). We employ a probit model to the World Bank's Global Findex Dataset of 2017. The analysis compares individuals' access to formal and informal financial services, savings, and credit tools, considering individual socioeconomic characteristics. The study finds significant gaps in financial access between individuals based on gender, age, income, education, location, and job status. Indonesia made more considerable improvements in financial inclusion than the Philippines and Vietnam. Access to savings and credit in the VIP remain low, mainly favoring adults, higher earners, formally employed, and the more educated ones. Females in the VIP have a higher likelihood to be financially included than males, they are more likely to hold savings accounts, to participate in informal finance, while they perceived fewer barriers to formal banking. Formal and informal services coexist in the VIP, while formal financial services often exclude the less privileged. Lack of money, high cost of finance, and perception of financial services as unnecessary are the largest obstacles to inclusion in the VIP, being more burdensome for low‐income and less‐educated people. Mobile banking services have developed yet leave the less‐fortunate people unserved. Age plays a vital role in savings and credit behavior, with the VIP missing to ensure access for young people to services.

The Role of Saving and Lending Cooperatives in Increasing Its Members Earning and Review Based On Islamic Law

The papers aim is to conformity with the content and spirit of the 1945 constitution, the government of the Republic Indonesia has underlined that cooperative ventures will be the pillar and accommodation of the people’s economy. A descriptive and analytic study has been conducted through the collection the data from interviews and completed questioners of the purposive sampling method. The study has reveals the services of saving and lending cooperatives to their members as well as the community are still unsatisfactory, but it has some benefit to the members. The money saving and lending contracts can be classed as reciprocal and contain the principles of freedom to contract and equilibrium. The cooperative principles are relevant with Islamic Law. It stills no consensus in opinion among the Moslem Scholars on the rate interest in money saving and lending from the cooperative.

The impact of savings and credit on health and health behaviours: an outcome-wide longitudinal approach

This study evaluated decisions related to debt and savings on physical health, emotional health and health behaviours. The longitudinal data from the Polish biennial household panel-Social Diagnosis Survey-were used. Evidence for a link between credit/savings and health/health behaviours was presented using three waves of the data and an outcome-wide regression analysis. To circumvent endogeneity, variables temporally prior to exposure were used as controls. Sensitivity analysis for unmeasured confounding, conducted using E-values, provided a check for robustness. Debt proved a significant stressor, affecting three of five physical health measures. Over-indebted individuals suffered even more in terms of physical health outcomes. The role of savings in physical health was much less significant, yet had significant bearing on measures of emotional health. In terms of emotional health, debt (over-indebtedness in particular) influenced loneliness and increased suicidal thoughts. With respect to health behaviours, savings appeared significant in reducing smoking and increasing uptake of sport activities, while debt had no significant effect in these areas. Recommendations are formulated to foster saving activity and develop institutional solutions for over-indebtedness.

The Impact of Rapid Aging and Pension Reform on Savings and the Labor Supply

We study, both empirically and quantitatively, the role of savings and the labor supply in self-insurance channels over the life cycle when one faces not only idiosyncratic income risks, but also changes in longevity risk and pension benefits. We pick China as a case study since China has undergone a dramatic process of rapid aging and a tremendous reduction in social security benefits for the period 1995-2009. We find that both savings and the labor supply are quantitatively important self-insurance channels in responding to changes in longevity risk and pension benefits, and the responses via adjustment to savings and labor supply have significant macroeconomic implications. Applying the model to China, we find that the pension reform and rapid aging together contribute 55 percent of the increase in the household saving rate from 1995 to 2009, and they jointly capture about 64 percent of the drastic increase in the labor supply for the same period.

The Impact of Rapid Aging and Pension Reform on Savings and the Labor Supply

We study, both empirically and quantitatively, the role of savings and the labor supply inself-insurance channels over the life cycle when one faces not only idiosyncratic income risks, but also changes in longevity risk and pension benefits. We pick China as a case study since China has undergone a dramatic process of rapid aging and a tremendous reduction in social security benefits for the period 1995-2009. We find that both savings and the labor supply are quantitatively important self-insurance channels in responding to changes in longevity risk and pension benefits, and the responses via adjustment to savings and labor supply have significant macroeconomic implications. Applying the model to China, we find that the pension reform and rapid aging together contribute 55 percent of the increase in the household saving rate from 1995 to 2009, and they jointly capture about 64 percent of the drastic increase in the labor supply for the same period.