Credit Union Resilience: The Financial Intermediation Perspective in Cameroon

Purpose: The purpose of this study is to investigating the resilience of credit unions in Cameroon from a financial intermediation perspective, using COBAC Norms as a proxy for operational compliance and performance. Materials and Methods: Data from 45 observations across nine credit union chapters and over a five year’s period were analysed using an ordinal mixed-effects model, with Principal Component Analysis (PCA) which addressed multicollinearity among predictors of savings mobilisation, membership, and loan portfolio quality. Findings: The results show that the scale of operations, captured by PC1 with a 95.50% variance, significantly predicts higher COBAC Norms (OR = 2.34, p < 0.001), with institutional variation (Chapter random effects, σ² = 1.2). The model satisfies proportional odds (Brant test p = 0.485) and shows no significant heteroskedasticity or autocorrelation. Findings suggest that larger-scale operations enhance resilience, with implications for policy and practice in scaling savings mobilization and membership. Smaller credit unions require targeted strategies to improve compliance. Unique Contribution to Theory, Practice and Policy: The study recommends that in scaling their operations, credit unions should prioritize membership drives, savings mobilization campaigns, and loan portfolio quality improvements to enhance COBAC Norms and resilience. Regulatory bodies such as COBAC should provide technical and financial assistance to smaller Chapters such as Maroua and Nkambe to scale their operations and improve compliance. High-performing Chapters such as Bamenda and Fundong for instance, should share management strategies through workshops and peer-learning programs. Policymakers should incentivize savings and membership growth through tax benefits or subsidies for credit unions. The study fills a gap in understanding financial intermediation’s role in credit union resilience in developing economies.