The Bangko Sentral ng Pilipinas has expressed support for the speedy passage of a bill that will streamline the regulatory requirements for cooperative banks.
MANILA — Filed on 31 May 2021, House Bill 9541 harmonizes regulations on cooperative banks being carried out by the BSP and the Cooperative Development Authority (CDA).
“The BSP is supporting the Cooperative Banking Bill in line with our commitment to further promote a vibrant cooperative banking sector and foster the growth of rural economies,” BSP Governor Benjamin Diokno said in a statement.
Cooperative banks are financial institutions whose major objective is to provide a wide range of financial services to cooperatives, their members, and the general public.
It further states that cooperative banks would be supervised by the BSP, although the CDA will continue to check their adherence to cooperative laws and regulations.
“The legislative reform is expected to further promote the safety and soundness of the country’s cooperative banking industry,” Diokno said.
For rules on governance, the provisions of banking laws, rules, and regulations shall prevail.
The bill, according to the BSP, provides incentives and privileges to encourage the development and organization of cooperative banks, as well as guidelines for their registration, regulation, and operation.
According to the BSP, HB 9541 also broadens the definition of cooperative bank membership, which is now limited to cooperative organizations and associations.
Diokno stated that the central bank looks forward to working with Congress, the CDA, and the cooperative banking industry to ensure the bill’s passage. (JD/The MiNT)