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
Views 439 Downloads 147
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
Follow on us
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
To cite this article
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.
Copyright © 2019 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/
) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Assenga, E; Mwageni E and Kayunze K, (2013). SACCOS and Women’s Poverty Reduction InMorogoro District, Tanzania; volume, 20 No 2.
Birchall, J (2004). Cooperatives and the Millennium Development Goals Geneva, International Labour Office.
CGAP, (2006) Regulation, Supervision, Government and Control in Cooperative.
Dagnew G, (2004) Saving and Credit Co-Operative in Ethiopia Microfinance Development Review. Volume 3 No 2.
Dessalew A. (2014), The Socio-Economic Role of Saving and Credit Cooperatives in Promoting Gender Equality: The Case of Estie Woreda, Ethiopia. European Journal of Business and Management, Vol. 6, No. 1, PP 1-7
Donaldson, T. H. (2009). Credit risk and exposure in securitization and transactions. New York, NJ: St. Martin’s Press.
Gorton, G and Winton, A (2002); Financial intermediation, Working Paper, 8928; National Bureau of Economic Research, 1050 Massachusetts Avenue.
Kifle T. (2012), The Impact of Savings and Credit Cooperatives in Ofla Wereda Tigray Region of Ethiopia. European Journal of Business and Management, Vol 4, No. 3.
Mishkin, F and Eakins, S, (2006). Financial Markets and Institutions, 5th Edition; Columbia University.
Muluneh, A (2012), Financial Inclusion Buttress incomes, assets, reduce vulnerability to shocks, Birritu 2012 No 113.
OECD (Organisation for Economic Co-operation and Development). (2005). OSLO Manual: Guide-lines for Collecting and Interpreting Innovation Data. Paris: OECD.
Rutherford, M. (2001). "Institutional Economics: Then and Now." Journal of Economic Perspectives, 15 (3).
Sharma A, and Kukreja S, (2013). An Analytical Study: Relevance of Financial Inclusion for Developing Nations. International Journal of Engineering and Science.
Sullivan, A. and Sheffrin, M. S (2003). Sustainable Development in the Context of Major Infrastructure Projects in United Kingdom.
Wright, Graham A. N. (2000). Microfinance Systems: Designing Quality Financial Services for the Poor. Zed Books Ltd. London & New York, and University Press Limited, Dhaka.
World Bank, (2006) Cooperative financial institutions: issues in governance, regulation, and supervision.