Please help me summarize this. (Please dont use the auto-summary on…

Question Answered step-by-step Please help me summarize this. (Please dont use the auto-summary on… Please help me summarize this. (Please dont use the auto-summary on the web)Credit cooperatives usually encountered a shortage of resources when they lend their money to a numerous member with not enough number of clients who provides deposits. This shortage results for the insufficient funds to be lend on future borrowers. Also, the failure of borrowers to pay in due time brings a shortage of resources. Moreover, credit cooperatives often encountered borrowers who unable to provide their collateral or additional guarantors (Yiorgos and Silvio, 2011)A lack of appropriate loan security hinders the outreach and sustainability thus creating problems to a credit cooperative. Additionally, the absence of operational policies accumulates more past due accounts. Credit cooperatives also exposed themselves to a serious issue if they don’t have adequate good underwriting policy to make sure that the cooperative is lending to good borrowers. Lastly, poor recording practices do produce operational problems and may be very detrimental to for credit cooperatives (Krahnen and Schmidt, 1991).Employees and members of the credit cooperative can also cause a problematic issue beside the operational and external factors. Fraud caused by the people related in the credit cooperative like dishonesty, attitude problems, and fraud on collection of payments performed by both employees and members are commonly encountered by the credit cooperatives. These kinds of issues and concerns are prevalent in any credit cooperative, but it can be mitigated to avoid such losses and damages (Suh et al, 2019).  Arts & Humanities Writing Share QuestionEmailCopy link Comments (0)