Examining the Effectiveness of Selected Credit Cooperatives in the Province of Pangasinan: Perspective from the Management and Members

Abstract

Cooperatives are instrumental in poverty reduction and improvement of financial status of people living in developing countries. One of the major issues confronting the majority of the poor and non-poor people in developing countries is the high degree of financial exclusion and high barriers to access to finance. Credit cooperatives are the most viable option to address this issue due to the minimal requirements to secure a financial loan. This study sought to evaluate the effectiveness of selected credit cooperatives in the Province of Pangasinan in fulfilling its purpose vis-à-vis the perception of its members on the credit cooperatives’ level of implementation of Republic Act 9520. Employing a descriptive research design, the study sampled two hundred seventy (270) members of four credit cooperatives in the Province of Pangasinan. Findings from the study show that the implementation of the provisions of RA 9520 varies across different areas, organizational provisions were perceived to be less implemented by the credit cooperatives compared to objectives, by-laws and administration. The economic benefits derived from credit cooperatives immensely surpass that of its social advantages. The most common problems identified by members can somehow be distilled into two major aspects: member empowerment and organizational coordination. Members have no access to trainings/education particularly relevant to the improvement of their financial acumen. Moreso, issues with communication prevents cohesion between members and management in terms of objectives, policies, and participation. The researchers recommend that credit cooperatives must formulate and implement a learning development program for their members, streamline their communication channels, and make procedural adjustments on the conduct of board meetings. Future researchers can expand the study by widening the geographic coverage and encouraging a larger group of credit cooperatives to participate in the study.