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Credit Co-operative Sub-Cluster Announces 2023-27 Strat Plans

Posted June 28, 2022


The Cooperative Development Authority is tasked by the Implementing Rules & Regulations (IRR) of the new Cooperative Development Authority Charter (Republic Act 11364) to create Sectoral Apex Organization composed of “Clusters”. The Finance Cluster composed of credit primary co-ops, cooperative banks, insurance cooperatives and Credit Surety Fund Cooperatives conducted a Strategic Planning Workshop by its leaders. Here are the Finance Cluster plans for 2023 to 2027 presented by Ms. Luz Yringco, General Manager of the Abuyog St. Francis Xavier Multipurpose Cooperative in Leyte at the Finance Cluster Online Discussions on June 9.

GOAL 1: Unify and integrate the finance cluster stakeholders

Rigt now we are fragmented.  So to do this, the Finance Cluster will do the following starting 2023 until 2028:

  • Establishment of Technology Service Cooperative – We envision that 80% of co-ops are users of the products of the TSCs in 2025 (40%) and in 2028 (80%). This will help institutions by reducing costs and the members will benefit and reduce carbon footprint with digitalization. We hope co-ops will participate in.
  • Establish One System on Data Analytics. We realized that our data analytics is not so desirable.  So we should have one system in data analytics that is 100% reliable and accepted by stakeholders.  By 2028, our target is 100% participation b co-ops.  These are the numbers that will really make us more acceptable to government and the private sector.  CDA is the key responsible entity for this.
  • One Finance Managers Club. We looked into the possibility and workability of such a club which will be organized per region and the members will meet at least once a month to share best practices and discuss issues and concerns to improve operations.  By 2023, 50% will have been organized.  And by 2024, we hope 100% regional co-ops ar already participating.

Responsibility for this is with the Sectoral Apex Organization.

  • One Performance Standard for Credit Co-ops.  Right now, the standards change. As the Administration of the CDA changes, standards change as well.

Adjustments are difficult when you change rules in the middle of the game.  We are looking at one acceptable performance evaluation tool that with 100 compliance standards set.  This is a difficult climb, specifically with our delinquency problem. In 2023, compliance will be 10% only.  By 2028, 100%.  Duty-bearer is CDA in consultation with the SAO.

  • Graduation of Small & Micro Cooperatives through Koop Kapatid. We also have a high number of small and micro cooperatives.  So we would like to graduate these small and micro cooperatives into medium-sized co-operatives through the CDA’s Koop Kapatid Program.

We target that 50% participating small and micro co-ops will have ‘moved up’ to the next level by 2028.

The Koop Kapatid Program will be highly-utilized.  

While we are being realistic on the 50% target, so in case that some small and micro co-ops fail, the remedy will be to merge or consolidate these co-ops to become larger, integrated, sustainable and stable.  By 2027, we target that 20% of those co-op that failed in this endeavor will have merged or consolidated, or closed.

  • Regulation of Co-op branching.  This is very urgent because competition is so strong so there is a need for a Memorandum Circular to be released in 2023 and that 0100% of co-ops will follow the regulations on branching out.

The CDA will do this.

GOAL 2.  Ensure effective and Efficient operation of cooperatives through sound guidelines, regulations and policies

  • Deputization of Federations to Supervise Co-ops – We want to ensure the efficient operations of credit co-ops.  The CDA alone cannot do the big job of supervising co-ops. Of course, the CDA will choose only federations that are qualified to supervise.

It is targeted that 60% of supervised co-ops should be able to level up.  Supervision will begin with the Billionaire co-ops (because they have the responsibility of managing Billions of funds, the largest bulk of the sector’s assets).  Thus, the reputation of the co-op sector rests more with these. To follow are the large co-operatives, and down the line.

  • Massive Information Dissemination where all co-ops are well-informed and compliant to Memorandum Circulars
  • Regulation on Multiple Membership and Officership in co-ops.  There should be zero multiple membership of the same type of co-ops.

Goad 3: Provide a systematic process of consultation in the co-op movement.

To achieve this:

  • Manual of Operations will be developed.  It will be harmonized and uniform.
  • Consultations will be done quarterly.  Entities responsible for these are the CDA and the Sectoral Apex Organization leaders.

GOAL 4: Strengthen the Partnership between CDA and the co-op sector.

  • Convergence of Stakeholders – increasing the number of co-operatives availing of financial assistance from government agencies.
  • Inter-Cooperative Financing Program – the Concept, framework, and guidelines are to be developed by the SAO leaders
  • Co-operative Environmental Program – At least 2 national environmental protection activities will be implemented by primary co-ops in partnership with CDA
  • Green Financing Program – At least 5% of loan portfolio of credit co-ops shall be dedicated to “Green Financing” – such as agro-forestry enterprise, loans for acquisition of solar power system/lights, bicycle loans, etc.  The CDA will produce a Memorandum Circular on the Green Financing Program.

Photo of 100 Peso Bill courtesy of Wikipedia


  • Finance Cluster Strategic Plans
  • finance cooperative cluster
  • Luz Yringco

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