Asked why co-ops need to be included in the implementation of the Credit Information System Act, which the CIC is designated to implement, he said: “Cooperatives are often designated as conduits of funding for the purpose of supporting agricultural and non-agricultural based ventures, and that cooperatives have the advantage of being closest to the underserved and un-served markets who have the potential of developing creditworthy records. Having cooperatives submit the credit behaviors of their members will also allow other Government Agencies to assess cooperatives for the ability to maintain acceptable NPL ratios and identify Cooperatives that embody best practice in lending.”
The Memorandum is dated 5th of November 2018, signed by CDA Chairman Orlando Ravanera. The said Memorandum requires “cooperatives engaged in lending and/or micro-financing activities and/or extending credit facilities . . . to submit comprehensive, accurate, current, objective, and factual basic credit data of all their borrowers.”
The CDA is in charge of the registration and regulation of all types of cooperatives in the Philippines. Cooperatives covered by the memorandum circular are those that have the authority to lend and/or perform micro-finance activities both to individuals and cooperative borrowers.
Garchitorena reports: “Currently, the CIC has around 600 medium and large cooperatives registered for submission of data and this is expected to considerably increase with the CDA’s Memo Circular. As part of our capacitation assistance, since 2015, the CIC has continuously provided series of technical trainings with the support of various cooperative federations across the country, we expect this to continue in 2019”.
There are roughly 1,800 reporting large and medium cooperatives as classified by the CDA as of 27 July 2016.
He added: “Having a centralized credit registry is a very crucial endeavor towards moving the Philippine lending industry away from collateralized lending practices for individuals and micro-small and medium enterprises (MSMEs). The availability of CIC’s Credit Reports, coupled with Credit Scores being offered by the CIC’s accredited credit bureaus or Special Accessing Entities, will also allow risk-based lending at par with other progressive economies for lenders and will facilitate a fact and data based roa
QUEZON CITY – Delegates from the All China Federation of Supply and Marketing Cooperatives (ACFSMC) visited the NATCCO Network headquarters on September 18 to exchange information, learn about the Philippine cooperative sector, and explore business linkages.Read More
AKLAN – She served the National and Local Government as a dedicated, hardworking Municipal Agriculturist Extension Worker of the Municipality of Lezo for 42 years, before she retired in 2010. And Emelinda Revestir-de la Cruz has proven herself to be a humble, honest and with high integrity in championing services both in government and private capacity to serve the marginal sector – farmers/fisherfolks through cooperativism.Read More
WISCONSIN, USA — Worldwide Foundation for Credit Unions, the social impact affiliate of the World Council of Credit Unions (WOCCU) dedicated to financial inclusion, has launched a project to design interoperable, open-loop, low-cost, real-time payment platforms for its global network of credit unions across Asia, exploring the use of the Mojaloop open-source platform.Read More