Strategy Field Study for Adjala Credit Union
Loading...
Date
2022
Journal Title
Journal ISSN
Volume Title
Publisher
Universidad ESAN
Redes Sociales
Citación
Citación APAAbstract
Adjala Credit Union Limited (ACUL) is in grave danger of depleting deposits if it continues along its current strategy. Currently, 89% of ACUL’s total revenue comes from interest income. To generate this income, ACUL predominately extends residential mortgages to its members, and ACUL uses member deposits to fund those mortgages. However, ACUL currently only has $3.1 million available to lend out. Moreover, ACUL cannot enhance its interest income through providing more loans to existing members because: (1) the regulatory maximum that ACUL can lend out to each member is only $597,000 and (2) membership is declining due to its ageing membership base. A declining membership base results in a decline in total member deposits, and thus constrains the funds available to lend. Consequently, ACUL’s growth in interest income is projected to decline. It must change its strategy if it hopes to avoid financial instability.
Description
Keywords
Política y estrategia empresaria, Cajas de ahorro, Cooperativas de crédito
