A Comparative Analysis of Financial Performance of Selected Credit Unions in Ashanti Region

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The study sought to assess the financial performance of Saint Peter's Co¬operative Credit Union (SPCCU), OTEC Co-operative Credit Union (OCCU) and Kumasi Polytechnic Co-operative Credit Union (KPCCU), all members of the Ashanti regional chapter of Credit Unions Association (CUA) of Ghana. The three unions were purposively selected to represent the composition of the credit union industry in the region. SPCCU is a community-based parish credit union (open-bond union); OCCU is la community-based secular credit union (open- bond union); and KPCCU is a work-place- based (closed-bond union). Specifically, a content analysis of the audited financial statements of SPCCU, OCCU and KPCCU from 2003 to 2007 financial years was done in five financial performance dimensions: effective financial structure; rates of return and cost; signs of growth; operational efficiency and liquidity. Line graphs and a bar chart have been used to demonstrate trends of performance of the three credit unions. Notable among the findings are that the three credit unions experienced an undulating performance during the five-year period and that the community-based credit unions maintained an effective financial structure during the five-year period. Among the conclusions of the study are that workplace-based closed bond credit unions in Ashanti region are growing faster than the community-based open credit unions and that community-based credit unions are more operationally efficient than workplace-based credit unions in Ashanti region. Prominent among the recommendations of the study are that credit unions in Ashanti region should reduce their lending rates and that management of the community-based unions should intensify their promotional campaigns to facilitate the rapid growth of the unions.
A Thesis submitted to the Department of Accounting and Finance, Kwame Nkrumah University of Science and Technology in partial fulfillment of the requirements for the degree of Master of Philosophy in Business Administration, 2008