Co-operative Banking KNEC notes

Description

COURSE OUTLINE

1. Purpose and structure of co-op banking

• Purposes of co-op banking
• Structure of co-op banking in Kenya
• Organisation charts of various co-op financial organisation
• Roles of various financial organisations in the co-op sector.

2. Credit programmes and policies

• Definition of the term credit
• Sources of loaniable funds
• distinction between production and consumption loan credit programmes
• conditions for participation in credit programmes
• criteria for classification of loans
• credit policy for union banking section and Saccos

3. Loan package of loan funds

• what is a loan package
• preparation of loan package and loan priority list
• importance of loan package and priority list

4. Acquisition of loan funds

• procedure for loan application in co-op bank of Kenya
• Union banking section
• member qualification
• upper loan limit

i. Short term
ii. Medium term (phase I)
iii. Medium term (phase II)

• Contents of loan application form
• Loan granting procedure

5. loan withdrawal and recording procedure

• withdrawal procedure
• loan recording
• loan reconciliation

6. loan repayment

• explanation of loan terms
• causes of loan default
• minimisation of loan default
• consequences of loan default

7. co-operative saving scheme

• Meaning of co-op saving scheme
• Historical background of co-op saving scheme
• Purpose of co-op saving scheme
• conditions for participations in co-op savings scheme

8. Union banking system

• Factors necessary for establishing a UBS
• Visibility studies for UBS
• Centralised and decentralized members savings
• Advantages and disadvantages of centralised and decentralized banking system

9. Union banking services

• Savings account services
• Conditions for opening and operating savings a/c
10. Members savings account and members personal account
• opening of a member savings a/c, personal a/c
• posting of transactions of members savings a/c and members personal/c

11. Reconciliation

• Definition of the term reconciliation
• importance of reconciliation
• opening and posting into various a/cs

12. liquidity and investment

• Meaning of the term liquidity
• preparation of cash inflow and cash outflow
• calculation of liquidity margin
• action taken on the basis of above calculations
• priority consideration in investment

13. Profitability margin

• explanation of profitability margin
• sources of capital in the UBS
• calculation on rate of returns on capital utilised
• composition of capital utilised
• calculation of cost of capital employed
• calculation of the grass interest margin
• actions arising from the gross interest margin

14. Security Arrangements

• Physical security measures in the UBS
• Control measure in the UBS
• Insurance requirement in the UBS

15. Structure and Daily Operations Of Saccos

• Functions/roles of various people in the Saccos