Role and Determinants of Saving and Credit Cooperative on Financial Intermediation in Hadiya Zone, Southern Ethiopia
Volume 8, Issue 4, December 2019, Pages: 134-141
Received: Jul. 4, 2019; Accepted: Aug. 5, 2019; Published: Nov. 14, 2019
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Abel Wudenah Abamagal, Department of Economics, College of Business and Economics, Woliata Sodo University, Woliata Sodo, Ethiopia
Philipos Wudineh Abamagal, Marketing and Cooperative Department, Hosanna Town Administrative, Hadiya Zone, Ethiopia
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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.
Cooperative, Financial Intermediation, Saving, Credit, Logit
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Abel Wudenah Abamagal, Philipos Wudineh Abamagal, Role and Determinants of Saving and Credit Cooperative on Financial Intermediation in Hadiya Zone, Southern Ethiopia, Economics. Vol. 8, No. 4, 2019, pp. 134-141. doi: 10.11648/
Copyright © 2019 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License ( which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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