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.
This is why I was baffled by the statistics on Fiji where Fiji credit unions lend more than they are receiving through members’ savings. Technology Technology is another issue that has significant impact on the operations of credit unions. Transactions are of small value and the administrative load can be cumbersome. A good computer system is needed to improve efficiency and effectiveness of cost.