ASSESSMENT OF SAVING BEHAVIOR AMONG RURAL SAVING AND CREDIT COOPERATIVE MEMBERS IN ETHIOPIA: - THE CASE OF YAYA GULELE WOREDA NORTHERN SHOA ZONE OF OROMIA

Abstract

Lack of financial funds is one of the leading problems facing rural savings and credit cooperatives. The aim of this study is to assess the level of saving behavior of rural saving and identify factors affecting the saving behavior of rural savings and credit cooperative members in Yaya Guleleworeda North shoa Zone of Oromia, Ethiopia. Simple random sampling technique was employed to select 96 sample respondents from four rural saving and credit cooperatives in the district. Both primary and secondary data were collected and analyzed using descriptive and econometric tools. Applying multiple regression models, the study found that, annual income of respondents’ influence on the behavior of savings of RUSACCOs members. Whereas, age of respondents, the family size and amount of loan borrowed were also significant but had a negative influence on the magnitude of savings of members. Finally, the researcher recommends that policy makers and implementers should boost the income of households in the lowest income group through diversifying- their agricultural activities, government and other stakeholders should train respondents on the importance of savings, strengthen informal education and professional or skill training. RUSACCOs should improve financial potentials through increasing membership; purchasing additional shares; increasing monthly saving amount and mobilizing saving. Non-governmental organizations should be given external credit to meet the loan demand of the members and implement other business activities through RUSACCOs.