scholarly journals SUSTAINABLE STRATEGIC GROWTH, SAVINGS AND CREDIT COOPERATIVE SOCIETY AND CREDIT UNION INDUSTRY: A GLOBAL OVERVIEW

2018 ◽  
Vol 3 (1) ◽  
pp. 37
Author(s):  
Ambrose Kipruto Chepkwei
Keyword(s):  
Corporate Strategy ◽  
Credit Unions ◽  
Credit Union ◽  
Unique Contribution ◽  
Industry Growth ◽  
Union Growth ◽  
Cooperative Society ◽  
Credit Cooperatives ◽  
Aggregate Growth ◽  
Innovation Rate

Purpose: To ascertain the sustainable strategic growth Savings and Credit Cooperative Societies and Credit Unions Industry globallyMethodology: This is a secondary research based on review of existing available literature (from books, conference reports, websites and journals) in the area of Savings and Credit Cooperatives Societies and Credit Unions in various countries globally.Findings: The study found that number of Savings and Credit Cooperative Societies/Credit Unions in Africa increased by 83.3%, while that of Asia increased by 78.0% between the periods 2007 and 2016 and the average industry growth for Africa and Asia was 33.2% and 42.3% respective. The number of Credit Union growth in Caribbean (-5.6%), Europe (-23.9%), Latin America (-4.5%), North America (-32.6%) and Oceania (-32.8%) registered number of Savings and Credit Cooperative Society/Credit Union growth decline between the periods 2007 and 2016. The global aggregate growth in the number of Savings and Credit Cooperative Society/Credit Unions between 2007 and 2016 was 46.0%.Unique contribution to theory, practice and policy: Considerations for global Savings and Credit Cooperative and Credit Union growth are evaluated on the multiple dimensions of market, region diversity, technological innovation rate, and Savings and Credit Cooperative Society/Credit Union market trends. Growth is the most frequently used corporate strategy. It means increases sales, assets, net profits and a chance to take advantage of the experience curve.

A comparison of bank and credit union growth around the financial crisis

2020 ◽  
Vol 35 (1) ◽  
pp. 25-44
Author(s):  
Wenling Lu ◽  
Judith Swisher
Keyword(s):  
Financial Crisis ◽  
Growth Rates ◽  
Commercial Banks ◽  
Credit Unions ◽  
Credit Union ◽  
Test Results ◽  
Net Charge ◽  
Content Type ◽  
Union Growth ◽  
Recent Financial Crisis

PurposeThe purpose of this research is to examine the growth rates of commercial banks and credit unions around the financial crisis and recovery. Credit unions are analyzed as a group and by field of membership. Specifically, this research analyzes the growth rates of assets, deposits, and loans.Design/methodology/approachThis research employs univariate tests of differences to examine the median growth rates for commercial banks and credit unions. Unbalanced pool regressions analyze growth rates during the pre-crisis, crisis, and recovery periods, controlling for size, net charge-offs, and unemployment.FindingsUnivariate test results that control for size show that banks grow at faster rates than credit unions for most of the pre-crisis years. However, medium sized credit unions grow at faster rates for most of the crisis and recovery years. Results of unbalanced pool regressions suggest that, overall, credit unions grow at slower rates than do banks. However, during the crisis and recovery, credit union growth is significantly greater than that of banks, after controlling for net charge-offs, size, and unemployment. Credit union growth varies by field of membership type.Originality/valueAlthough a large volume of research examines commercial bank performance around the financial crisis, only a few papers assess the performance of credit unions. And very few papers compare commercial banks and credit unions. This paper explores how the recent financial crisis influenced the growth of commercial banks and credit unions from 2005 to 2013.

The impact of strategic consistency on market share and ROA

2014 ◽  
Vol 32 (3) ◽  
pp. 176-193 ◽  
Author(s):  
Larry P. Pleshko ◽  
Richard A. Heiens ◽  
Plamen Peev
Keyword(s):  
Marketing Strategy ◽  
Market Share ◽  
Financial Services ◽  
Corporate Strategy ◽  
Credit Unions ◽  
Credit Union ◽  
Theory Approach ◽  
Aggressive Approach ◽  
Content Type ◽  
The Impact

Purpose – The purpose of this paper is to take a contingency theory approach to examine how performance is affected by the relationships between the Miles & Snow strategic groupings and a variety of marketing strategy concepts, including a firm's service focus, service growth, market coverage, marketing initiative, market growth, Porter strategy, and market orientation. Design/methodology/approach – Data for the study were gathered from a statewide survey among 125 chief executives of credit unions belonging to the Florida Credit Union League (FCUL). ROA figures were derived from government-mandated accounting reports in the state of Florida. ANOVA and correlation analysis were employed to analyze data. Findings – This study shows that firms that match an aggressive Miles and Snow profile with a more aggressive approach to seven other strategy dimensions often enjoy higher market share relative to credit unions characterized by a different alignment of the various aspects of marketing strategy. The results also suggest that achieving such a fit is not relevant to maximizing a firm's ROA. Research limitations/implications – The research sample was biased toward medium to larger firms that may possess strategic resources superior to those of the smaller firms in the industry. Also, credit unions may tend to have somewhat less aggressive profit objectives compared to other institutions in the banking industry. Practical implications – The findings outline to financial services executives the benefits of considering all dimensions of corporate strategy simultaneously, rather than one at a time. Originality/value – The paper illustrates how aligning certain aspects of marketing strategy can boost particular performance indicators and provides insight as to what the most appropriate alignments are depending on the circumstances.

scholarly journals The Effect of Bundling Trade Association Monitoring and Female Board Representation on Loan Losses in Community Credit Unions

2021 ◽  
pp. 089976402110014
Author(s):  
Anne Marie Ward ◽  
John Forker ◽  
Barry Reilly
Keyword(s):  
Agency Theory ◽  
Credit Unions ◽  
Credit Union ◽  
Trade Association ◽  
Complementary Effect ◽  
Nuanced Understanding ◽  
Board Representation ◽  
Loan Losses ◽  
The Relationship ◽  
Different Levels

Loan book management is important to community credit union survival, particularly in deprived localities. Consistent with agency theory, prior studies of credit unions report an association among individual monitoring mechanisms, trade association monitoring, and female board representation, respectively, and reduced loan losses. This study provides a more nuanced understanding by investigating the moderating influence of these monitoring mechanisms on the relationship between loan losses and deprivation and by considering the effect of bundle combinations of different levels of the two monitoring mechanisms on loan losses. The results reveal that credit unions subject to trade association monitoring have the lowest loan losses. However, in the absence of trade association monitoring, female board representation has a moderating effect on loan losses as deprivation increases. Finally, trade association monitoring and female board representation have a substitutive, rather than a complementary effect on loan losses.

scholarly journals An Analysis of Managerial Challenges of Affiliated Credit Unions to Cameroon Cooperative Credit Union League (CamCCUL)

2019 ◽  
pp. 1-8
Author(s):  
Neba Noela Buwah ◽  
Chofor Joyvice
Keyword(s):  
Urban Areas ◽  
Credit Unions ◽  
Credit Union ◽  
Primary Data ◽  
Chi Square ◽  
Rural And Urban Areas ◽  
Managerial Decisions ◽  
Rural And Urban ◽  
Stratified Sample ◽  
Corporate Parenting

Aim: This study seeks to analyse the managerial challenges that affiliated Credit Unions to Cameroon Cooperative Credit Union League (CamCCUL) are exposed to. The prevalence of Credit Unions with limited managerial capacities in most Cameroonian communities both in rural and urban areas invites corporate parenting from bigger support and supervisory organizations like CamCCUL. This parenting relationship between CamCCUL and her affiliates presumes superior managerial capabilities to affiliates which in most cases is a misplaced expectation. This is prompted by the fact that these institutions affect a multitude of lives both directly and indirectly. The Agency and Stakeholder theories served as foundation. Study Design: The study adopted a survey and causal exploratory design with both qualitative and quantitative parameters. The focus of the researcher was to explore managerial challenges from the managers themselves and members of credit unions who are better placed to gauge the effectiveness of managerial actions in terms of the service they receive. Place and Duration: This study was conducted between April 2016 and November 2018, involving 138 of the 210 Credit Unions operating mostly in the Northwest and Southwest regions of Cameroon. Methodology: The major instrument for data collection was questionnaire and a pilot study of 50 copies was carried out across various Chapters of CamCCUL. With a population of 210, a stratified sample of 138 was obtained using the Taro Yamane Formula.The primary data was tested to be reliable with a 0.701 consistency coefficient using Cronbach alpha. The study employed Chi-Square as a tool of analysis to measure Credit Unions’ affiliation to CamCCUL and specific Managerial Challenges. Findings: The findings revealed that affiliate Credit Unions to face numerous managerial challenges ranging from structural to resources deficiencies. The most alarming of these problems were the lack of autonomy to take managerial decisions and threats from CamCCUL supervisors. Conclusion: The study concluded that CamCCUL as a league is not operating solely to achieve its mission and has rather kept its affiliated Credit Unions in a tight corner. The researchers recommended that the regulating authorities should render Credit Unions more autonomous where possible. Additionally, there should be well-structured and comprehensive governance policies for the management of all affiliated Credit Unions to comply with.

An Application of Knowledge Management and Human Capital Valuation

2016 ◽  
pp. 201-233
Author(s):  
Sarah Robertson
Keyword(s):  
Human Capital ◽  
Knowledge Management ◽  
Core Competencies ◽  
Balance Sheet ◽  
Credit Unions ◽  
The United States ◽  
Credit Union ◽  
Level Of Knowledge ◽  
Expected Benefits ◽  
Knowledge Intensive

The purpose of this study is to investigate the level of Knowledge Management (KM) and Human Capital Valuation (HCV) as it is applied in credit unions. Knowledge has been recognized as one of the most important assets, which if appropriately managed, provides a foundation for creating core competencies and competitive advantages for organizations. KM applications and strategies have become critical and significant in the credit union industry, as they operate in a highly competitive and knowledge-intensive financial marketplace. A few factors depict the level of KM maturity within an organization, the priority of implementation, and the availability and affordability of resources. HCV is the balance sheet metric from a development of systems and infrastructure, which can tie metrics of employee behavior of value offering back to the member owners (stakeholders). The case studies described in this chapter are based on the business experience of the author, a credit union CEO of 12 years and a business consultant to the Midwest-region of the United States, in the credit union industry for 6 years. A KM audit and an HCV were conducted in a mid-sized credit union. The appreciation of KM and HCV are developing in the credit union industry; however, it is found that organizations have not been able to capitalize on the expected benefits and leverage their performances with KM solutions and HC Strategies, unless it is priority and a planned event. This is a developing industry with signs of future improvement. There are examples siting various Midwest credit unions, where KM applications and HC Strategies are evident at various stages with opportunities for intellectual growth and learning.

Factors affecting Canadian credit unions' financial performance

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Eman Almehdawe ◽  
Saqib Khan ◽  
Manish Lamsal ◽  
Angèle Poirier
Keyword(s):  
Panel Data ◽  
Financial Performance ◽  
Performance Metrics ◽  
Service Providers ◽  
Credit Unions ◽  
Credit Union ◽  
Fixed Effect ◽  
Capital Adequacy ◽  
Management Service ◽  
Content Type

PurposeThe purpose of this paper is to identify the factors that affect the Canadian credit unions' financial performance which play an important role in providing financial services to the agriculture sector.Design/methodology/approachWe surveyed the literature to identify different performance metrics of credit unions and a set of possible factors that might affect their performance. We collected data related to different dependent and independent variables from financial statements and balance sheets of 189 credit unions and from general websites like Statistics Canada and Bank of Canada. Then, we imputed the missing data and developed fixed effect and random effect panel data regression models. First, we used return on asset as the main dependent variable. Afterwards, we used six performance metrics to check the robustness of our models.FindingsFrom an initial list of 16 possible factors that might affect the financial performance of a credit union, we were able to narrow the factors down to the nine most significant ones. It was observed that credit unions in the prairies were more likely to perform well financially as compared to other provinces. Membership size, the size of a credit union in terms of total assets, capital adequacy ratio, market penetration, diversification of income, inflation rate and provincial GDP and interest rates were significant. The cross-sectional analysis performed confirmed the findings of the fixed effect panel data models.Research limitations/implicationsThis study has a limitation concerning the number of years included into the time series analysis. Only ten years worth of data were available.Practical implicationsResults provide credit union management, service providers for credit unions and market analysts with a current understanding of how different internal and external factors might affect return on assets, return on equity, delinquency, cash ratio, efficiency ratio, asset growth and loan growth. Our models can be used to predict financial performance of credit unions based on the defined significant variables.Originality/valueAlthough there is a wide body of literature that studies performance of banks, not many studies focus on credit unions. Moreover, the existing studies are based on credit unions in United States or Europe, and literature on Canadian credit unions is scarce. The data collected covered 189 Canadian credit unions. To our knowledge this is the first study that looks at the various internal, external and regulatory factors together that affect the credit unions in various jurisdictions of Canada.

scholarly journals Is There a Credit Union Difference? Comparing Canadian Credit Union and Bank Branch Locations

2017 ◽  
Vol 7 (2) ◽  
Author(s):  
John Maiorano ◽  
Laurie Mook ◽  
Jack Quarter
Keyword(s):  
Rural Areas ◽  
Large Population ◽  
National Level ◽  
Credit Unions ◽  
Credit Union ◽  
Significant Finding ◽  
Middle Income ◽  
Bank Branch ◽  
Marginalized Communities ◽  
Bank Branches

This study of credit union and bank branch locations and neighbourhoods in Canada seeks to discover if there is a distinct credit union niche. The study builds on an earlier paper of credit unions and banks in the US which found that credit unions in Wisconsin, Arizona and New Hampshire were more likely to be located in lower-income areas than bank branches (Mook, Maiorano & Quarter, 2015). In Canada, we find that credit union branches are over-represented in rural areas, and under-represented in large population centres relative to bank branches. Additionally, credit unions are overrepresented in middle income areas and underrepresented in high income areas compared to bank branches both at the national level and in all provinces where differences are statistically significant. Another significant finding is that while both credit unions and banks cater to marginalized communities, the type of marginalized communities they cater to distinguishes them. Making use of the Canadian Marginalization Index, we find credit union branches in Canada to be overrepresented in communities marginalized along the dimensions of Material Deprivation and Dependency, while bank branches are overrepresented in communities marginalized along the dimension of Residential Instability and Ethnic Concentration.

The credit crunch – the right time for credit unions to strike?

Legal Studies ◽  
2009 ◽  
Vol 29 (1) ◽  
pp. 75-98 ◽  
Author(s):  
Nicholas Ryder
Keyword(s):  
Financial Services ◽  
Regulatory System ◽  
Credit Unions ◽  
Credit Union ◽  
Political Support ◽  
North American Continent ◽  
Cooperative Movement ◽  
The North ◽  
The Government ◽  
The Uk

The origins of the cooperative movement can be traced to the Rochdale Society of Equitable Pioneers in 1844, from which similar institutions emerged in Central Europe, the North American continent and the rest of the world. Modern credit unions evolved from these small cooperative societies and have developed into mainstream providers of financial services in many jurisdictions. However, credit unions in the UK have not made a similar impact. There are several factors that have limited their growth – an inadequate legislative framework, an ineffective credit union regulatory system, inappropriate development models, an over-reliance on state subsidies and a disunited movement. The aim of this paper is to re-examine these factors in light of the level of political support provided by the government since 1997.

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