Research Journal of Economics & Business Studies - RJEBS - The ...
Research Journal of Economics & Business Studies - RJEBS - The ...
Research Journal of Economics & Business Studies - RJEBS - The ...
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financial cooperative. In the case <strong>of</strong> Gohe cooperatives saving and credit union, this ratio is far below<br />
this benchmark <strong>of</strong> the WOCCU proposed standard during the study years. This reflects also the<br />
existence <strong>of</strong> low level <strong>of</strong> institutional capital <strong>of</strong> Gohe cooperatives saving and credit union during the<br />
study years; and delinquent loans to reserves (A 4 ) measure the adequacy <strong>of</strong> reserves to cover the<br />
delinquent loans shows the union doing its financial activities in delinquency control in line with<br />
WOCCUs proposed standard as stated above in A 1 and as we can see Table 5, the union is following<br />
stringent credit policy and collection procedure has no any problem with delinquent loan over the<br />
whole study periods. At the end, Gohe cooperatives saving and credit union has good financial health<br />
in its assets quality (loan portfolio) though the union has a problem <strong>of</strong> too much investment in nonearning<br />
assets and inadequacy <strong>of</strong> institutional capital.<br />
Table 6: Financial Structure <strong>of</strong> Gohe Cooperatives Saving and Credit Union (Years in E.C)<br />
Indicators <strong>of</strong> Financial Structure<br />
Proposed 1998 1999 2000 2001<br />
standard<br />
F 1 :Net Loan/Total Assets 70%-80% 29.47% 91.49% 19.97% 93.16%<br />
F 2: Liquid investments/Total Assets <strong>RJEBS</strong>: Volume: 02, Number: 06, April-2013 Page 65