Delinquent loans Another issue of concern is the area of delinquent loans. I am told that the loan delinquency rate is quite high in Fiji. This has the impact of reducing the credit union pool of funds and the worse this is, the more the negative perception this has on members, who may in turn withdraw their membership.
Liquidity Liquidity management is also an issue where there have been experiences of liquidity shortfalls and hence liquidity risk. This happens when there are mismatches in the assets and liabilities of the credit unions and in particular when there is a tendency that more loans are given out that can jeopardize the cash flow positions of credit unions.