Journal article
Lending procedures and the viability-social objectives conflict in credit unions
International Journal of Bank Marketing, Vol.21(67), pp.304-311
2003
Abstract
Sound lending procedures in retail financial institutions involve identifying high-risk applicants, modifying loan conditions such as security requirements, and monitoring repayments post-loan approval. For managers of credit unions, this procedure is complicated by the need to achieve balance between the institution's social objective of improving loan accessibility so members can attain lifestyle goals and the possibility of reducing the institution's viability through loan default. The results of our survey of Australian credit unions, in which 70 per cent of respondents reported experiencing some bankruptcy-related default on personal loans, indicate managers do not impose more stringent lending conditions on high-risk borrowers. However, social and viability objectives could be better balanced through careful loan monitoring and timely arrears practices.
Details
- Title
- Lending procedures and the viability-social objectives conflict in credit unions
- Authors
- Deborah Ralston (Author) - University of the Sunshine Coast - Faculty of BusinessApril Wright (Author) - University of the Sunshine Coast - Faculty of Business
- Publication details
- International Journal of Bank Marketing, Vol.21(67), pp.304-311
- Publisher
- Emerald Group Publishing Ltd.
- Date published
- 2003
- DOI
- 10.1108/02652320310498456
- ISSN
- 0265-2323
- Organisation Unit
- University of the Sunshine Coast, Queensland
- Language
- English
- Record Identifier
- 99449102202621
- Output Type
- Journal article
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