Retooling Credit Unions: The Case of Credit Union Association of Ghana
This paper investigates the manner in which credit unions in Ghana have adjusted to the new economic climate engendered by economic liberalization and the financial sector regulation in 1985. The paper also explores the activities of the Credit Union Association of Ghana (CUA) by investigating the structures and policies of the CUA as well as its operational strategies.
The paper finds the following trends among the credit unions:
- Movement towards a new financially independent and competitive credit union model;
- Increased professionalism in the management of CUA;
- Introduction of new institutional policies;
- Improved financial management and credit administration techniques;
- Improving lateral linkages among primary unions and their vertical linkage with the national association.
The paper also reviews the operational strategies of credit unions such as:
- Diversification of the products and services of CUA;
- Establishment of central services, such as the Central Finance Facility (CFF);
- Risk management scheme, for the credit union movement.
The paper concludes with the observation that while credit unions in Ghana have improved on their governance, managerial and operational aspects, they are still not fully financially sufficient and therefore, need to focus more on efficiency and sustainability issues.
