TEACHER’S SAVINGS AND CREDIT COOPERATIVE WITH BASEL STANDARD

Abstract

The objectives of this research were 1) to study the Cooperative Act.1999 (amended 2010) in practical affecting the performance of Teacher’s Savings and Credit Cooperatives 2) to study capital adequacy and loans analysis of general Basel standard. and 3) to set guidelines capital adequacy and loans analysis as international standard.

Use qualitative research methods by studying as on Basel financial regulation and Cooperative Act, 1999 (amended 2010), observing and in-depth interviews were conducted, by selecting a specific management persons.            

The research found as follows : The Cooperative Act, 1999 (amended 2010) was not appropriate to regulate Teacher’s Savings and Credit Cooperatives, the contents did not cover risk management, the supervision of capital adequacy was not in accordance with Basel standard. Loans products and information technology developments were inadequate. The loans collaterals focused on personal guarantee.    

Recommendations : There should amend Cooperative Act, 1999 (amended 2010), should maintain the capital adequacy in accordance with the Basel standard, focus on credit risk and using real estate as a loans collateral, develop products, information technology and credit analysis tools.

In the next should research all Savings Cooperatives and Credit Union Cooperatives.