ACCOUNTABILITY AND MORAL HAZARD RISK IN SAVINGS AND LOAN COOPERATIVES

Abstract

This study aims to understand the meaning of accountability and moral hazard in the management practices of credit unions. A qualitative approach using the case study method was employed to explore the subjective experiences of credit union board members, supervisors, and members regarding responsibility, transparency, and potential instances of misconduct. Data were collected through in-depth interviews, observations, and document analysis, and were then analyzed using a process of meaning reduction to capture the essence of the phenomena. The research results indicate that accountability is understood not only as an administrative obligation but also as a form of moral responsibility among members. Moral hazard risks arise due to weak supervision, low information transparency, and a lack of ethical awareness among members. These findings underscore the importance of strengthening a culture of accountability to minimize the potential for moral hazard within the cooperative.