Financial Cooperatives

Research purpose: This study aims to determine the reasons for the low penetration rate of the South African co-operative financial institution (CFI) sector; and to recommend a valid and reliable tool for assessing key success factors of CFIs. Little research has previously been undertaken on why the South African CFI sector remains small, with a penetration rate of just 0.1%. Research design, approach and method: This study used a quantitative design to evaluate objective data. A structured questionnaire was used to collect data from 303 consumers around Tshwane, and from 20 registered CFI representatives around the country. The SPSS software was used to analyse the data. Main findings: The study revealed that the low penetration rate of the CFI sector is due to consumers’ lack of knowledge about them, their products and activities. An assessment model has been proposed to help address the issue. Practical implication: The assessment model could be a useful tool for CFIs and other ...

Purpose – The purpose of this paper is to investigate the Malaysian homeowners' intention to participate in the Cash Waqf-Financial Cooperative-Musharakah Mutanaqisah (CWFCMM) home financing model using rigorous scale validation procedures.
Design/methodology/approach – An adapted questionnaire with 26 items was administered to382 academic and supporting staffs, postgraduate and undergraduate students in three states in Malaysia. The data were analyzed using exploratory factor analysis and confirmatory factor analysis with SPSS 21 and AMOS 21, respectively.
Findings – The results further support the parsimonious nature theory of planned behavior (TPB) with its three original construct of attitude, subjective norm, and perceived behavioral control and an additional construct of perceived cost advantages of the CWFCMM Model. A validated TPB scale with 24 items measured can be proposed to be used as an evaluative tool to assess the level to which the homeowners are interested to participate in the CWFCMM Model.
Research limitations/implications – The modified TPB scale would also facilitate the identifications of factors that influence homeowners’ intention to opt for Islamic home financing (IHF) by non-bank Islamic financial institutions such as financial cooperative.
Practical implications – The CWFCMM Model aims to harness the potential synergy between third-sector economy players such as waqf and financial cooperatives in offering affordable IHF solution to potential homeowners.

Research purpose: This study aims to determine the reasons for the low penetration rate of the South African cooperative financial institution (CFI) sector; and to recommend a valid and reliable tool for assessing key success factors of CFIs. Little research has previously been undertaken on why the South African CFI sector remains small, with a penetration rate of just 0.1%. Research design, approach and method: This study used a quantitative design to evaluate objective data. A structured questionnaire was used to collect data from 303 consumers around Tshwane, and from 20 registered CFI representatives around the country. The SPSS software was used to analyse the data. Main findings: The study revealed that the low penetration rate of the CFI sector is due to consumers' lack of knowledge about them, their products and activities. An assessment model has been proposed to help address the issue. Practical implication: The assessment model could be a useful tool for CFIs and other micro-credit lenders, as it aims to assist in measuring the effectiveness of their innovation and entrepreneurial strategies and then to initiate the necessary steps and training programmes to address the problem. Original value: The study findings provide empirical evidence on possible reasons for the low penetration rate of South African CFIs; and the proposed assessment model may help to improve membership growth and performance in the sector; particularly as no prior study has been conducted to determine the possible reasons for such a low penetration rate of SA cooperative financial institutions.

This article discusses the sixty-five years of Nepalese cooperative movement, current state, and its direction. Traditional cooperatives such as Guthi, Parma, Dharmabhakari, Dhikuri, and others had to wait until 1957 to join the modern cooperative movement. Nepal's cooperative movement has developed both quantitively and qualitatively on its sixty-five years of maturity. It is now commonly acknowledged that Nepal's cooperative movement has the potential to improve social economic disparities by lowering poverty and increasing employment opportunities. Because of its benefits and global appeal, the cooperative sector is vital. After the government and the private sector, it is described in the constitution as the third pillar of the economy and the largest sector. Cooperatives have long been seen as a tried and true method of achieving socialism. Cooperatives must be established to go from the working hand to the mouth, and they can help to bridge the divide between the rural and urban economies by bringing village produce to the city and urban capital to the village. It has the potential to help alleviate poverty, create job opportunities, and develop a more equitable economy. The cooperative movement in Nepal should be focused in this direction. From the first to the present sixteenth planned growth stage, the cooperative sector has been given significantly more significance, with a few exceptions. The other cooperative movement hasn't been able to fully realize its goals and values. As a result, all stakeholders must pay attention to qualitative development in order for cooperatives to become the economy's third pillar, as the constitution recognizes.

El objetivo del trabajo es determinar si las Sociedades Cooperativas de Ahorro y Préstamo de México (SOCAPS) obedecen a la teoría de la jerarquización financiera, cómo toman sus decisiones de financiamiento y cuáles son las posibles consecuencias de ello. Para este fin, se propuso un modelo hipotético, basado en la teoría de la jerarquización financiera y tomando en consideración las restricciones que tienen las SOCAPS; el cual, se contrastó con las decisiones de financiamiento de una muestra de 34 Sociedades Cooperativas de Ahorro y Préstamo de México, a través de la interpretación de las betas estandarizadas obtenidas mediante el análisis de regresión múltiple. De esta forma, se hallaron en las SOCAPS once distintos criterios de financiamiento, de los cuales, uno obedece a la teoría de la jerarquización. Asimismo, se encontró que la fuente de financiamiento principal de las SOCAPS son los fondos internos, seguida de los préstamos bancarios y de otros organismos. Con esto, se concl...

This paper utilises an analytical framework to explore and  critically examine issues and challenges of offering Shari’ah-compliant mortgage financing by financial cooperatives in Malaysia. Concepts from five distinct theories (Theory of Credit Cooperative, Transaction Costs Theory, Agency Theory, Stakeholder Theory, and Theory of Credit Rationing) are modified and integrated to form a hybrid, layered framework. This is then used as a ‘lens’ to highlight the issues pertaining to business models and strategies, good governance, regulation and supervision, risk
management, human resource management, which may influence the success of mortgage financing. This analytical
framework is useful for relevant stakeholders on how to manage the issues, challenges, and harnessing the prospects
of Shari’ah-compliant mortgage financing products