PEARLS: Financial Stabilization Monitoring & Evaluation
Richardson, D.
Publication Date: 2000
Published by: WOCCU - World Council of Credit Unions
Document Type: Book
What is the Pearls Monitoring System and of what relevance is it to the management of credits?
The paper explores the PEARLS monitoring system and sees it as an executive management tool that is used for monitoring the performance of a credit. It is designed as a management tool that goes beyond the simple identification of problems and helps managers find meaningful solutions to serious institutional deficiencies. Report looks at the components of PEARLS and observes that each letter of the name "PEARLS" looks at a different, but critical aspect of the credit union. It is capable of identifying a credit union with a weak capital base, and can also identify the probable causes. It argues that the use of the system permits managers to quickly and accurately pinpoint troubled areas, and to make the necessary adjustments before problems become serious. Also its standardized evaluation ratios and formulas eliminates the diverse criteria used by credit unions to evaluate their operations, creating a universal financial language that everyone can speak and understand. Concludes that PEARLS is an "early warning system" that generates invaluable management information and an effective supervisory mechanism.
This document is available in hard copy only. Please contact www.woccu.org for a copy
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