Financial Assessment of A Credit Union In West Timor, Indonesia

Authors

  • Paskalis Seran Widya Mandira University
  • Corazon G. Anzano University of San Carlos

DOI:

https://doi.org/10.32871/rmrj1402.02.19

Keywords:

credit union, financial performance, West Timor, Indonesia, customer satisfaction

Abstract

The study is an assessment of the financial performance of a credit union in West Timor, Indonesia using the PEARLS Monitoring System established by the World Council of Credit Union. The credit union is run by the Catholic diocese that envisioned prosperity to its members coming from different religious denominations and from low income families thus the need to recommend improvements to ensure its sustainability and service to the community. The study analyzed financial performance from 2007 to 2012 and determined
members’ satisfaction of services rendered. It used semi-structured survey instruments, personal interview, and focus group discussion to gather data. Findings of the study revealed that members’ savings were not sufficiently protected. However, members were very satisfied with almost all of the services offered by the credit union. The study concludes that there is a need to improve its portfolio quality and liquidity management as evidenced by a high rate of loan delinquency. To ensure more sustainable operations, it is recommended that management exert effort to increase net loans receivables but at the same time address members’ high delinquency rate for loans. Additional investment on liquid assets is suggested for loan portfolio to generate more revenue and increase the net institutional capital. It is further recommended that future studies would include governance and organizational performance particularly on credit management processes to complement the results of this study.

Author Biographies

Paskalis Seran, Widya Mandira University

is a Catholic priest of the Divine Word Missionary
and ordained in June 2006. He is currently a fulltime lecturer at the Faculty of Business & Ecnomics in Widya Mandira University in Kupang, Indonesia. He finished his studies of Theology in Bonn, Germany in 2004 at the Philosophisch-Theologische Hocschule St. Augustinbei Bonn and his Masters in Business Administration at the University of San Carlos, Cebu, Philippines in March 2013. His research interests include fi nancial management, social entrepreneurship and corporate social responsibility.

Corazon G. Anzano, University of San Carlos

is an Associate Professor of the University of
San Carlos, Cebu, Philippines where she teaches both in the undergraduate and graduate programs at the School of Business & Economics. She completed her Master of Arts in Economics in March 1997 and Doctor of Philosophy in
Management in October 2012 in the same University. Dr. Anzano is currently the Chair of the Department of Economics. Her research interest includes city competitiveness, local economics development, entrepreneurship, financial analysis and knowledge management.

References

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Published

2014-02-28

How to Cite

Seran, P., & Anzano, C. G. (2014). Financial Assessment of A Credit Union In West Timor, Indonesia. Recoletos Multidisciplinary Research Journal, 2(2). https://doi.org/10.32871/rmrj1402.02.19

Issue

Vol. 2 No. 2 (2014)

Section

Articles

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Copyright of the Journal belongs to the University of San Jose-Recoletos