scholarly journals INFLUENCE OF FINANCIAL LINKAGES ON GROWTH OF INFORMAL FINANCIAL INSTITUTIONS IN HOMA BAY COUNTY OF KENYA

2020 ◽  
pp. 19-27
Author(s):  
Benard Odhiambo Obop ◽  
Alphonce Juma Odondo ◽  
Nelson Obange
Keyword(s):  
Developing Countries ◽  
Information Sharing ◽  
Financial Institutions ◽  
Financial Training ◽  
Negative Relationship ◽  
Secondary Data ◽  
Sampling Technique ◽  
Primary Data ◽  
Credit Access ◽  
Access To Credit

Financial linkage is an emerging form of partnership widely practiced between NGOs, formal and informal financial institutions in developing countries. The existing forms include but not limited to financial training, Savings products and Credit Information Sharing (CIS). Informal financial institutions enter into such linkages with an aim of growing the volumes of credit accessed. In Homa Bay County, various forms of financial linkages have emerged with statistics indicating unstable growth in volumes of credit accessed by informal financial institutions. According to Homa bay Women Sacco, the loan disbursed grew by 88.46% between 2015 and 2017. This is in tandem with the institutional theory of complementarity adopted by this study. However, studies on formal-informal financial institutions’ relationship and contribution of financial linkages to credit access in developing countries have elicited divergent views. Some reveal that financial linkages offer the best solution to promoting credit access while others indicate that the linkages may reduce access to credit and impact negatively on growth of the institutions. It is on this basis that the study sought to establish the influence of the emerging linkages on growth of informal financial institutions in Homa Bay County. The study was based on the positivists approach to conceptualization and was guided by correlational research design. A total of 300 respondents were selected using stratified sampling technique. Both open and closed-ended pre-tested questionnaires were used to collect primary data. Secondary data were from relevant documents of the institutions. The desired relationships were established through multiple regressions while bivariate associations were determined using Correlational analysis. The study revealed that volumes of group savings and Credit information sharing both had significant relationships with the growth of informal financial institutions. On the other hand, financial training had an insignificant negative relationship with access to credit by the institutions, the negative relationship suggests that through training, the informal financial institution’s managers strengthen their internal management mechanisms, thus become less dependent on borrowed funds for their activities. The study thus recommends that the three forms of linkages be strengthened to enhance growth of the institutions in Homa Bay County. KEY WORDS: Financial Linkages, Growth, Institutions, County, Kenya

scholarly journals Factors Determining the Credit Accessibility by the Small-Scale Entrepreneurs: A Case of Handloom Weaving in Bangladesh

2020 ◽  
Vol 15 (8) ◽  
pp. 93
Author(s):  
Mst Tania Parvin ◽  
Kanij Fatema ◽  
Sadika Haque
Keyword(s):  
Financial Services ◽  
Work Experience ◽  
Sampling Technique ◽  
Farm Size ◽  
Primary Data ◽  
Small Scale ◽  
Microfinance Institutions ◽  
Institutional Perspective ◽  
Credit Access ◽  
Access To Credit

This study examines the determinants of access to credit by the handloom weavers in Bangladesh. Using the multistage sampling technique, the primary data for the analysis were collected from 311 randomly selected handloom weavers from Sirajganj district of Bangladesh during July to December 2015. The data are analyzed by using the Logit model. The model identifies several individual, household, community, and institution-specific factors as the significant determinants of credit access. Among them, family size, farm size, work experience, saving and the flexibility in the terms and conditions of loan use increase the probability of credit access by the handloom weavers whereas the risk aversion attitude and the distance between the Microfinance Institutions (MFIs) from the commune reduce such possibility. Therefore, this study suggests that respondents should utilize the joint effort of the available family members in this labor-intensive business while undertaking rational decisions enhanced through the skills and capabilities acquired over the years. They should maintain a sufficient amount of saving to prove them eligible in repaying their credit. From the institutional perspective, it is suggested that the MFIs should provide adequate financial and non-financial services to its clientele as per their needs. Borrowers’ easy accessibility to the institutions should also be ensured. In doing so, they should open up more branches in the villages so that the door to door services are available to the borrowers. It is expected that these recommendations will help in improving the credit access by the handloom weavers in Bangladesh.

scholarly journals Enterprise Risk Management Implementation of Financial Institutions in Ethiopia

2019 ◽  
Vol 9 (2) ◽  
pp. 5289-5295
Keyword(s):  
Risk Management ◽  
Financial Institutions ◽  
Secondary Data ◽  
Sampling Technique ◽  
Enterprise Risk Management ◽  
Insurance Companies ◽  
Chief Financial Officers ◽  
Primary Data ◽  
Senior Managers ◽  
Enterprise Risk

Recently, even though, more emphasis is given to enterprise risk management (ERM) worldwide to manage risks, there is scant knowledge and empirical evidence on ERM implementation of financial institutions in Ethiopia as there are only limited research works or literature related to ERM trends in Ethiopia. Thus, the main objective of this study was to assess the enterprise risk management implementation of financial institutions in Ethiopia. This study adopted a descriptive research design. In order to obtain relevant data for the study, both primary and secondary data sources were employed. The primary data were gathered through questionnaires while secondary data were extracted from different relevant sources such as books, journals, and websites. The population of the study was the entire banks and insurance companies in Ethiopia. At the time of the survey, there were 35 financial institutions (18 banks and 17 insurance companies) registered with the National Bank of Ethiopia and operating in Ethiopia. The unit of analysis were these institutions’ headquarter office chief risk officers, chief financial officers, senior managers, technical staff of risk management units and other employees whose work is related to risk management in each of the selected institutions. The sample responds were selected using a purposive sampling technique and a total number of sample respondent were 180. The data collected was analyzed and presented using descriptive statistics and the results were presented using pie charts, tables, and graphs. The results of the analyses revealed that the majority of the financial institutions in Ethiopia involved in the survey have a formal ERM in place even though the extent of ERM adoption varies from institution to institution. However, the results of the analysis show that ERM implementation level is low and in its infant stage in financial institutions in Ethiopia and these financial institutions have also less developed ERM practices than international organizations.

scholarly journals Measuring the Efficiency Profile of Crop Production in Traditional Rainfed Sector of North Kordofan state, Sudan.

2017 ◽  
Vol 5 (5) ◽  
pp. 464
Author(s):  
Ibrahim Elnour Ibrahim ◽  
Ahmed Mohammed Morakah
Keyword(s):  
Technical Efficiency ◽  
Economic Efficiency ◽  
Crop Production ◽  
Stochastic Frontier ◽  
Allocative Efficiency ◽  
Secondary Data ◽  
Sampling Technique ◽  
Primary Data ◽  
Credit Access ◽  
The Mean

The main objective of this study was to measure and analyzes economic efficiency of crop production in North Kordofan State. Secondary objectives included: estimate technical, allocative and economic efficiency and construct efficiency profile determination and the effect of socio-economic factors behind inefficiency. Primary data was collected by a structured questionnaire following stratified random sampling technique from 205 farmers, while secondary data was collected form relevant Institutional sources. The stochastic frontier production and cost function model analysis was used to estimate the technical, allocative and economic efficiency of producing crops. The predicted technical efficiency and economic efficiency are the basis for estimating allocative efficiency of farm. Results indicated that the mean technical efficiency of sorghum, millet, groundnuts and sesame were 0.57, 0.73, 0.53 and 0.74, respectively. The mean allocative efficiency of sorghum, millet, groundnuts and sesame production were 0.84, 0.83, 0.92 and 0.90, respectively. The mean economic efficiency of sorghum, millet, groundnut and sesame were 0.48, 0.62, 0.49 and 0.67, respectively. Farmers who have credit access are more technically efficient than those who have no credit access.

scholarly journals EFFECT OF INFORMATION SHARING FUNCTION ON FINANCIAL PERFORMANCE OF SAVINGS AND CREDIT CO-OPERATIVE SOCIETIES

2017 ◽  
Vol 1 (5) ◽  
pp. 49 ◽  
Author(s):  
Jackson Mnago Ndungo ◽  
Dr. Olweny Tobias ◽  
Dr. Memba Florence
Keyword(s):  
Financial Performance ◽  
Information Sharing ◽  
Financial Institutions ◽  
Positive Relationship ◽  
Secondary Data ◽  
Target Population ◽  
Primary Data ◽  
Top Managers ◽  
Sharing Function ◽  
Business Entities

Purpose: The objective of the study was to establish effect of credit information sharing on financial performance of SACCOs in Kenya. Studies have indicated that countries are establishing credit registries to reduce defaults, caused by information asymmetry, which have been a crisis for most financial institutions. Various financial institutions including SACCOs which have the business of lending are currently subjecting their customers in credit reference bureaus. Literature indicates that credit defaults have continued to pose financial crisis for financial institutions. Many studies done indicate that credit default is caused by lack or inadequate accurate credit information. In Kenya, through the Banking Act of 2009 saw the establishment of the first credit reference bureau in 2010 where individuals and business entities were to be subjected to CRBs. This study sought to establish the effect of information sharing on financial performance of SACCOs in Kenya. The study adopted a descriptive research design which was both quantitative and qualitative. The target population was 181 and a sample of 135 (74.5%) licensed deposit taking SACCOs as at 31st December 2014 was used. The choice of the licensed deposit taking SACCOs in Kenya was very objective since they offer employment opportunities for our youth. In most cases SACCOs deal with a larger group of clients from the informal sector as opposed to other financial institutions like banks and so it was possible to obtain information that is representative of Kenya. Secondary data was collected from published financial records and CRBs while primary data was collected through questionnaires which were administered to the top managers of the SACCOs. The study established that credit information sharing has a significant and positive relationship with financial performance of the sampled SACCOs. The study highlights effect of credit information sharing with possible recommendations for improvement on financial performance.Findings: The study concluded that there was a significant and positive relationship between information sharing function and financial performance thus the existence of credit reference bureaus was suitable for improving financial performance of SACCOs. Thus Credit reference bureaus have led to share of negative credit reports; Credit reference bureaus have led to improved defaults rate of borrowers, improved lenders response rate on credit lending and have reduced existence of privacy on borrowers’ credit history.Recommendation: Credit information sharing should be addressed through networking of all credit information amongst lenders so that lenders can have readily available credit information, both positive and negative, on the borrowers which would be shared across all lenders.

Effects of Financial Innovations on Profitability for Deposit Taking Microfinancing Institutions in Kenya

2018 ◽  
Vol 9 (6) ◽  
pp. 529-536
Author(s):  
Martin Khoya Odipo ◽  
Keyword(s):  
Financial Institutions ◽  
Positive Relationship ◽  
Financial Institution ◽  
Secondary Data ◽  
Financial Statements ◽  
Descriptive Statistics ◽  
Primary Data ◽  
Microfinance Institutions ◽  
Financial Innovations ◽  
Strong Positive Relationship

Recent studies have documented that innovations improve profitability of firms. This article documents that deposit taking micro financial institutions that have adopted financial innovations have increased their profitability. The study covered five years between 2009-2013. Both primary and secondary data were used in the study. Primary data was obtained through administration of drop and pick questionnaires to selected employees of the institutions. Secondary data was obtained from financial statements and management reports of these deposit taking microfinance institutions. Data was analyzed using descriptive statistics, return on asset and multi-liner regression model to determine the effect of each financial innovation applied on profitability on the micro-financial institution. The results showed that most deposit taking microfinance institutions adopted these financial innovations in their current operations. There was strong positive relationship between individual innovations and profitability. In line with profitability ROA also showed improvement each year after the adoption of these financial innovations.

Comparsion Of Efficency Of Cucumber Production In Poly-House

2019 ◽  
Vol 8 (9) ◽  
pp. 22-30
Author(s):  
SONIA HOODA
Keyword(s):  
Open Field ◽  
Resource Use ◽  
Secondary Data ◽  
Sampling Technique ◽  
Farming System ◽  
Primary Data ◽  
Statistical Tools ◽  
Average Percentage ◽  
Net Returns ◽  
Douglas Production Function

The study has made an attempt on resource use and economic efficiency of cucumber production under poly-house farming and open field farming. Primary data collected by using purposive sampling technique from selected districts. Sample of 50 farmers (25 Poly-house farmers and 25 Open field farmers) was taken from each district on the basis of availability. Secondary data was collected from Horticulture Department. For data analysis statistical tools average, percentage and Linear Cobb-Douglas Production Function was used. The study found that the yield of cucumber was more under poly-house farming as compare to open field farming system. The reason behind this was long harvesting period and more number of fruits per plant under poly-house farming conditions. The data specifies higher net returns per acre of cucumber under poly-house farming over open field farming, which implicit poly-house farming not only highly profitable but also economically viable as compared to open field farming in study area.

PENGARUH KEPEMIMPINAN DAN MOTVASI KERJA TERHADAP KUALITAS PELAYANAN PUBLIK (STUDI KASUS PADA KANTOR KEMENTERIAN AGAMA SUNGAI PENUH )

2020 ◽  
Author(s):  
Pahrizal
Keyword(s):  
Data Analysis ◽  
Service Quality ◽  
Public Service ◽  
Random Sampling ◽  
Secondary Data ◽  
Sampling Technique ◽  
Simple Random Sampling ◽  
Primary Data ◽  
Analysis Techniques ◽  
Intervening Variables

The research is proposed to test the influence of Leadership and Motivation Work on Public Service Quality. The population in this study was the Kantor Kementerian Agama Sungai Penuh who had received the last 1 year service at the Kantor Kementerian Agama Sungai Penuh, amounting to 260 people. Furthermore, by using the Slovin formula, a sample size of 158 people was chosen with a sampling technique based on Simple Random Sampling. This study uses primary data and secondary data. Data analysis techniques used are path analysis and hypothesis testing using t test with data analysis using SPSS version 20. The results of the study based on showing that partially the Leadership and motivation work have a positive and significant effect on Public Service Quality. The results also show that motivation work variables act as intervening variables between Leadership and Public Service Quality.

PENGARUH KOMPETENSI DAN LINGKUNGAN KERJA FISIK TERHADAP KINERJA KARYAWAN PT. SUZUKI INDOMOBIL MOTOR

2019 ◽  
Vol 7 (2) ◽  
Author(s):  
Rasmansyah Rasmansyah ◽  
M Zainal Aripin
Keyword(s):  
Work Environment ◽  
Random Sampling ◽  
Employee Performance ◽  
Secondary Data ◽  
Sampling Technique ◽  
Primary Data ◽  
Physical Work ◽  
Physical Work Environment ◽  
And Performance ◽  
Dominant Influence

<em>This research was conducted based on the existence of problems in the competence and physical work environment of employee performance. This study aims to determine the effect of competencies and physical work environment simultaneously or partially on the performance of employees of PT. Suzuki Indomobil Motor. The sampling technique is the sample random sampling technique. The type of research used is descriptive and verivative research methods, with data collection techniques using primary data and secondary data. The results showed that competency, physical work environment, and performance were categorized quite well. Based on the calculation, it can be seen that simultaneously the competence and physical work environment have a positive and significant influence on the performance of the employees of PT. Suzuki Indomobil Motor. Partially shows that the physical work environment has the most dominant influence on the performance of employees of PT. Suzuki Indomobil Motor</em>

The Role of Mobile Money in Moderating Financial Exclusion: A Tanzanian Experience

2020 ◽  
Vol 2 ◽  
pp. 1-24 ◽  
Author(s):  
Deogratius Joseph Mhella
Keyword(s):  
Developing Countries ◽  
Financial Institutions ◽  
Banking Sector ◽  
Research Question ◽  
Microfinance Institutions ◽  
Mobile Money ◽  
Access To Credit ◽  
Financial Exclusion

Prior to the advent of mobile money, the banking sector in most of the developing countries excluded certain segments of the population. The excluded populations were deemed as a risk to the banking sector. The banking sector did not work with cash stripped and the financially disenfranchised people. Financial exclusion persisted to incredibly higher levels. Those excluded did not have: bank accounts, savings in financial institutions, access to credit, loan and insurance services. The advent of mobile money moderated the very factors of financial exclusion that the banks failed to resolve. This paper explains how mobile money moderates the factors of financial exclusion that the banks and microfinance institutions have always failed to moderate. The paper seeks to answer the following research question: 'How has mobile money moderated the factors of financial exclusion that other financial institutions failed to resolve between 1960 and 2008? Tanzania has been chosen as a case study to show how mobile has succeeded in moderating financial exclusion in the period after 2008.

scholarly journals FACTORS INFLUENCING CREDIT ACCESS FOR FIRMS IN THE BIOGAS SUB SECTOR IN KENYA

2017 ◽  
Vol 2 (3) ◽  
pp. 1
Author(s):  
Bernard Mulandi ◽  
Dr. Sifunjo Kisaka
Keyword(s):  
Social Sciences ◽  
Sampling Technique ◽  
Target Population ◽  
Loan Portfolio ◽  
Credit Access ◽  
Access To Credit ◽  
Qualitative And Quantitative ◽  
Factors Influencing ◽  
The Government ◽  
Descriptive Survey

Purpose: The purpose of this study was to determine the factors influencing credit access for firms in the biogas sub sector in Kenya.Methodology: The study adopted descriptive survey. The target population of the study was the firms in biogas sub sector in Kenya. A sample of 40 firms was selected from all the firms using the random sampling technique. Both qualitative and quantitative data was collected using a questionnaire that consisted of both open ended and close ended questions. Data was analyzed using Statistical Package for Social Sciences (SPSS) and results presented in frequency tables to show how the responses for the various questions posed to the respondents. The data was then analyzed in terms of descriptive statistics like frequencies, means and percentages.Results: The study findings revealed that firms in biogas sub sector had low access to credit from the banks. It was also possible to conclude that age of firm, capital invested, size of the business, financial records, risk preference and access to information influence the level of access to credit by renewable energy sector firms.Policy recommendation: It is recommended that micro financing institutions should regulate the products and services they offer to SMEs so as to have all clients enclosed in their loan portfolio. The study further recommends that banks should work hand in hand with the government to support upcoming businesses and offer financial support.

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