• German System "Cooperative Examination"

    BERLIN, GERMANY -- On September 18-29, the DGRV organized a training course for consultants from Vietnam and from Philippine project partner, NATCCO, in the practice of Auditing.   The training consisted of two parts, starting with the introduction into the German Read More
  • Stabilization Fund System Keeps Co-op Trust

    26,000 cooperatives in the Philippines with memberships ranging in size from 15 to 100,000 manage the hard-earned money of their members.  Their foundation is trust.  When trust is gone, co-ops are gone.   The Stabilization Fund System (SFS) is a Read More
  • CSOs Push Peace & Democracy at SOCDEV 2017

    QUEZON CITY – The Caucus of Development NGO Networks (CODE-NGO) pushed democracy as the key to development and advanced its advocacies as it ended its General Assembly and Social Development Celebration (SOCDEV) last November 24-25 at the Great Eastern Hotel . CODE-NGO Read More
  • CDA Appeals to the Billionaire Co-operatives

    TAGUIG CITY – The Cooperative Development Authority (CDA) has broadcast an appeal to the so-called Billionaire Co-operatives to use their vast resources to 1) protect the environment, 2) assist indigenous Filipinos, and 3) help small or fledgling co-operatives.   At the Read More
  • ICA Confab on People-Centered Development

    KUALA LUMPUR – More than 1,800 co-operators are meeting here for the International Co-operative Alliance’s Global Conference and General Assembly (14- 17 November). For three days co-operators from around the world will examine how co-operatives are putting people at the centre Read More
  • NATCCO Central Fund is 15!

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  • What to do with all that Lovely Money

    Retired Major General Gilbert Llanto of ACDI Multi-Purpose Cooperative in Taguig City was invited to speak at the recent Agricultural Cooperative Conference in Quezon City.  Every co-op leader should read this, and have the same conviction.    As you very Read More
  • What to do with all that Lovely Money

    Retired Major General Gilbert Llanto of ACDI Multi-Purpose Cooperative in Taguig City was invited to speak at the recent Agricultural Cooperative Conference in Quezon City.  Every co-op leader should read this, and have the same conviction.    As you very Read More
  • Handbook on Job Analysis and Evaluation

    Managing people is one of the most difficult and complex part of the operations of a co-op.   That is why the NATCCO Network has released a new book entitled “Job Analysis and Evaluation Handbook” to provide a “strategic Human Read More
  • Co-ops Must Register with NPC

    Cooperatives as Personal Information Controllers or Processors are mandated to comply with the Data Privacy Act (DPA), and are thus, required to register with the National Privacy Commission (NPC). This was the reply of the NPC to a query by Read More
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Stabilization Fund System Keeps Co-op Trust

26,000 cooperatives in the Philippines with memberships ranging in size from 15 to 100,000 manage the hard-earned money of their members.  Their foundation is trust.  When trust is gone, co-ops are gone.
 
The Stabilization Fund System (SFS) is a form of “solidarity fund” as cooperatives contributing to it, in effect, are coming together to help one another to prevent insolvency (or bankruptcy) – thus maintaining the trust and confidence of depositors.
 
Following the models in Germany, Netherlands, Canada and South Korea, NATCCO Network established the SFS in 2008 with 3 elements: 
 
1) SUPERVISION AND MONITORING through on-site Risk-Based Evaluation (RBE) of member-cooperatives by the SFS Team
 
2) OFF-SITE MONITORING AND FOLLOW-THROUGH of compliance to RBE recommendations
 
3) FINANCIAL ASSISTANCE, or use of the Stabilization Fund, as a last resort to prevent co-op run/bankruptcy.
 
Overseeing the Fund is the SF Committee comprising the NATCCO CEO, NATCCO Chairperson, the Cooperative Development Authority (CDA), the Dept. of Finance or the Bangko Sentral ng Pilipinas, and the Association of Asian Confederation of Credit Unions.
 
The SFS provides co-ops:
 
1) Supervision and monitoring of cooperatives, and if necessary, remedial measures 
 
2) Awareness of the cooperative’s risk level and recommendations to control and mitigate risks
 
3) Self-Regulation to protect cooperatives against insolvency, thus protecting the investments of individual members
 
4) Increase of public trust and confidence in cooperatives
 
5) Cooperatives recognized as a self-regulated financial provider of choice to the marginalized 
 
6) If all co-ops participate in the SFS, this displays Solidarity 
 
The approaches of the SFS are 1) pro-active prevention, avoiding problems in the first place, and 2) holistic, evaluation of a co-op’s financials, investments, credit, cash, controls and systems,  governance, compliance and human resources.
A cooperative under the SFS agrees to:
 
Contribute 0.5% of Total Assets to the Fund which the cooperative builds up  over time
 
Submit financial data for monitoring
 
Open books for inspection
 
The SFS has 50 member co-operatives nationwide, contributing P24.3 Million to the Stabilization Fund.  
 
Holy Child Multi-Purpose Cooperative (Bato, Leyte) joined the SFS in 2008.  General Manager Lorna Gesultura, says: “We never regret investing in the SFS. Aside from securing co-op assets, it earns interest. At inspections, we're guided and monitored in our operations.”   
 
St. Vincent Ferrer Parish MPC (Odiongan, Romblon) Chairperson Martin Lasaga says: “We’re happy to know the areas in our operation where we need to focus!”
 
Technical partner is German co-op federation Deutsche Genosenschafts Raiffeissen Verband (DGRV).
 
The National Association of Training Centers for Cooperatives was established in 1977 to provide and standardize the education and training components of cooperatives.
 
Today, the National Confederation of Cooperatives’ (NATCCO Network’s) Mission is to “build the socio-economic capabilities of cooperatives through the delivery of superior financial products and allied services.”
 
For co-ops to be able to help their members rise out of poverty, the NATCCO Network offers training to co-op leaders, managers and staff in Financial and Risk Management to Bookkeeping, from Marketing to Information Technology, from gender & development and Disaster-Readiness for business continuity, and every aspect of a co-op’s operations.
 
Other services include Financial Intermediation (taking deposits and providing loans), Information Technology (Financial software, ATMs, POS, mobile payment platform) Conditional Cash Transfer, Stabilization Fund, Life Insurance, and Advocacy & Networking.
 

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