Sambasivam Yuvaraj, Biruk Ayalew Wondem


This study was conducted in Gohe Cooperatives Saving and Credit Union in Bure Woreda to analyze the financial performance by using the data set disclosed in four years annual audit reports of the financial statements and questionnaire Survey that was carried out on 132 general assembly member representatives to collect information on the saving mobilization strategies efficiencies and loan services. Participatory discussion with management boards; and in depth interview with control committee, manager, and accountant were carried out on saving mobilization and loan services of the union on how they are mobilizing members saving and delivering quality credit to members. This paper examines the financial performance on the financial health, sign of growth trends, efficiency of saving mobilization and the loan services strategies. The health check up and sign of growth trend conducted in the framework of most common financial ratios of PEARLS on the basis of available financial data concludes that ‘Gohe’ has unhealthy position on liquidity; inadequacy of capital; though healthy assets quality in delinquency  non-earning assets are greater than the standard set by the WOCCU model. The efficiencies of saving mobilization & loan service, however, the union able to get good members attitude and perception on saving security, return on members saving, professional services, credit appraisal technique and loan service the union faces the problem of loan able funds, absence of technical assistance of professionals, and sometimes members were not able to pay loan repayment on the due date, limitation in providing diversified services.


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ISSN : 2251-1555