The Portfolio Behaviour of Employment-Based Cooperative Thrift and Credit Societies
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Among the financial institutions in the informal system is the cooperative thrift and credit society
which is highly prone to failure. However, some of the successful CTCS coops are employmentbased.
This paper studies the determinants behind their growth and sustenance in the process of
building their portfolio. The paper adopts the primary method of data gathering where 222 coop thrift
officials covering 14 organisations were served with the questionnaires. 178 questionnaires were
retrieved and analysed. This represented a retrieval rate of 78%. The main variables used to estimate
the outputs were loans size, portfolio size and growth as dependent variables while the independent
variables were, average savings, membership strength, loan access and portfolio growth other
deposits from members. The techniques adopted were the ordinary least squares (OLS) and the Two
stage least square (2SLS) regressions. The results indicate that membership strength is significant
across the different regressions as well as supporting finance from deposits of members and other
sources such as loans. The paper recommends that this type coop should be engrafted into the
mainstream workplace and financial institutions and more of this type of coops should be encouraged
in the system.
Keywords
HF5601 Accounting, HG Finance