Analysis of Financial Performance Ratings of Selected Selected Small Credit Cooperative in Benguet

Abstract

The study was conducted to provide information about the financial performance ratings of primary credit cooperative in terms of COOP-PESOS indicators, that can be a basis for the credit cooperatives to improve and enhanced their financial performance capabilities. It also looked into the financial profile, the problems and coping mechanism of the studied cooperatives. The cooperatives studied were small credit cooperative with total assets of below fifteen million, and they were offering loans and savings services. The cooperatives studied were not proficient enough based in their poor COOP PESOS overall performance ratings that ranges from 62 to 79 percent. Indicators that greatly caused poor performance were: operation and management that determine the absence of the necessary system; policies and procedure for efficiency and effectiveness; plans and programs that determine the presence of developmental, approved and budget plan; operations that indicates dependence on external source of funds and low membership growth; and structure of assets that requires more effective use of the assets to generate revenues to minimize non-earning assets. The problems and the coping mechanism of the cooperative greatly influenced the financial performance ratings of the studied cooperatives. The cooperatives studied commonly encountered problems on uncollected loans of some delinquent borrowers, some not partisan members and minimal access to computer system to upgrade their operation. In order to cope-up they conducted cooperative pre-membership training and send their officers and representatives for training sponsored by private organizations, unions and regulating agency such as CDA. Cooperatives maintained genuine financial records of transaction. Cooperatives motivate members to actively participate on the cooperative programs and reminding borrowers on payment schedules through reminder and collection letters and sending demand letters to delinquent borrowers.