Role and Determinants of Saving and Credit Cooperative on Financial Intermediation in Hadiya Zone, Southern Ethiopia

Abel Wudenah Abamagal; Philipos Wudineh Abamagal

doi:doi:10.11648/j.eco.20190804.12

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Role and Determinants of Saving and Credit Cooperative on Financial Intermediation in Hadiya Zone, Southern Ethiopia

Abel Wudenah Abamagal, Philipos Wudineh Abamagal

Published in Economics (Volume 8, Issue 4)

Received: 4 July 2019 Accepted: 5 August 2019 Published: 14 November 2019

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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.

Published in	Economics (Volume 8, Issue 4)
DOI	10.11648/j.eco.20190804.12
Page(s)	134-141
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2019. Published by Science Publishing Group

Keywords

Cooperative, Financial Intermediation, Saving, Credit, Logit

References

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[2]	Birchall, J (2004). Cooperatives and the Millennium Development Goals Geneva, International Labour Office.
[3]	CGAP, (2006) Regulation, Supervision, Government and Control in Cooperative.
[4]	Dagnew G, (2004) Saving and Credit Co-Operative in Ethiopia Microfinance Development Review. Volume 3 No 2.
[5]	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
[6]	Donaldson, T. H. (2009). Credit risk and exposure in securitization and transactions. New York, NJ: St. Martin’s Press.
[7]	Gorton, G and Winton, A (2002); Financial intermediation, Working Paper, 8928; National Bureau of Economic Research, 1050 Massachusetts Avenue.
[8]	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.
[9]	Mishkin, F and Eakins, S, (2006). Financial Markets and Institutions, 5th Edition; Columbia University.
[10]	Muluneh, A (2012), Financial Inclusion Buttress incomes, assets, reduce vulnerability to shocks, Birritu 2012 No 113.
[11]	OECD (Organisation for Economic Co-operation and Development). (2005). OSLO Manual: Guide-lines for Collecting and Interpreting Innovation Data. Paris: OECD.
[12]	Rutherford, M. (2001). "Institutional Economics: Then and Now." Journal of Economic Perspectives, 15 (3).
[13]	Sharma A, and Kukreja S, (2013). An Analytical Study: Relevance of Financial Inclusion for Developing Nations. International Journal of Engineering and Science.
[14]	Sullivan, A. and Sheffrin, M. S (2003). Sustainable Development in the Context of Major Infrastructure Projects in United Kingdom.
[15]	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.
[16]	World Bank, (2006) Cooperative financial institutions: issues in governance, regulation, and supervision.

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Abel Wudenah Abamagal, Philipos Wudineh Abamagal. (2019). Role and Determinants of Saving and Credit Cooperative on Financial Intermediation in Hadiya Zone, Southern Ethiopia. Economics, 8(4), 134-141. https://doi.org/10.11648/j.eco.20190804.12

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ACS Style

Abel Wudenah Abamagal; Philipos Wudineh Abamagal. Role and Determinants of Saving and Credit Cooperative on Financial Intermediation in Hadiya Zone, Southern Ethiopia. Economics. 2019, 8(4), 134-141. doi: 10.11648/j.eco.20190804.12

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AMA Style

Abel Wudenah Abamagal, Philipos Wudineh Abamagal. Role and Determinants of Saving and Credit Cooperative on Financial Intermediation in Hadiya Zone, Southern Ethiopia. Economics. 2019;8(4):134-141. doi: 10.11648/j.eco.20190804.12

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@article{10.11648/j.eco.20190804.12,
  author = {Abel Wudenah Abamagal and Philipos Wudineh Abamagal},
  title = {Role and Determinants of Saving and Credit Cooperative on Financial Intermediation in Hadiya Zone, Southern Ethiopia},
  journal = {Economics},
  volume = {8},
  number = {4},
  pages = {134-141},
  doi = {10.11648/j.eco.20190804.12},
  url = {https://doi.org/10.11648/j.eco.20190804.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.eco.20190804.12},
  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.},
 year = {2019}
}

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TY  - JOUR
T1  - Role and Determinants of Saving and Credit Cooperative on Financial Intermediation in Hadiya Zone, Southern Ethiopia
AU  - Abel Wudenah Abamagal
AU  - Philipos Wudineh Abamagal
Y1  - 2019/11/14
PY  - 2019
N1  - https://doi.org/10.11648/j.eco.20190804.12
DO  - 10.11648/j.eco.20190804.12
T2  - Economics
JF  - Economics
JO  - Economics
SP  - 134
EP  - 141
PB  - Science Publishing Group
SN  - 2376-6603
UR  - https://doi.org/10.11648/j.eco.20190804.12
AB  - 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.
VL  - 8
IS  - 4
ER  -

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Author Information

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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APA Style

Abel Wudenah Abamagal, Philipos Wudineh Abamagal. (2019). Role and Determinants of Saving and Credit Cooperative on Financial Intermediation in Hadiya Zone, Southern Ethiopia. Economics, 8(4), 134-141. https://doi.org/10.11648/j.eco.20190804.12

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ACS Style

Abel Wudenah Abamagal; Philipos Wudineh Abamagal. Role and Determinants of Saving and Credit Cooperative on Financial Intermediation in Hadiya Zone, Southern Ethiopia. Economics. 2019, 8(4), 134-141. doi: 10.11648/j.eco.20190804.12

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AMA Style

Abel Wudenah Abamagal, Philipos Wudineh Abamagal. Role and Determinants of Saving and Credit Cooperative on Financial Intermediation in Hadiya Zone, Southern Ethiopia. Economics. 2019;8(4):134-141. doi: 10.11648/j.eco.20190804.12

Copy | Download

@article{10.11648/j.eco.20190804.12,
  author = {Abel Wudenah Abamagal and Philipos Wudineh Abamagal},
  title = {Role and Determinants of Saving and Credit Cooperative on Financial Intermediation in Hadiya Zone, Southern Ethiopia},
  journal = {Economics},
  volume = {8},
  number = {4},
  pages = {134-141},
  doi = {10.11648/j.eco.20190804.12},
  url = {https://doi.org/10.11648/j.eco.20190804.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.eco.20190804.12},
  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.},
 year = {2019}
}

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TY  - JOUR
T1  - Role and Determinants of Saving and Credit Cooperative on Financial Intermediation in Hadiya Zone, Southern Ethiopia
AU  - Abel Wudenah Abamagal
AU  - Philipos Wudineh Abamagal
Y1  - 2019/11/14
PY  - 2019
N1  - https://doi.org/10.11648/j.eco.20190804.12
DO  - 10.11648/j.eco.20190804.12
T2  - Economics
JF  - Economics
JO  - Economics
SP  - 134
EP  - 141
PB  - Science Publishing Group
SN  - 2376-6603
UR  - https://doi.org/10.11648/j.eco.20190804.12
AB  - 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.
VL  - 8
IS  - 4
ER  -

Copy | Download