Factors Influencing the Financial Performances of Saving and Credit Cooperative Societies in Case of Derash and Alle Woreda in SNNPRG, Ethiopia

摘要

The study aims to identify factors influencing financial performance of savings and credit cooperative societies of the study area. To achieve the “general and specific objectives” the study was look factors influencing the financial performance of SACCOS. This study also used descriptive research design and quantitative research approach were used and the primary sources of data were collected from 220 staff members of SACCOS from Derash and Alle Woreda Southern Region. The sampling techniques were stratified sampling method. For data analysis, descriptive statistics including mean, std. deviation, frequency and percentages were used. The results of the study indicated loan repayment, interest rates, membership enrolment, and duration of loan processing, management of loan defaulters were identified as factors influencing the financial performance of savings and credit cooperative societies. In general to increasing the financial performance it suggests that SACCOs in the region should strengthen its applicant screening criteria and due diligence assessment to select potential risk taking applicants and adopt appropriate pre and post credit risk assessments. Besides, the SACCOs needs to make sure that borrowed funds are being used for the intended purpose through enhanced credit monitoring.