1.
Landscape of the
Philippine
Cooperatives
Finance Cluster
Discussant
Atty. Ma. Lourdes Pacao
Deputy Administrator
Cooperative Development Authority

2.
The Congress shall create
an Agency to promote the
viability and growth of
cooperatives as instruments
for social justice and
economic development
(Phil Constitution - Sec 15,
Art XII)
RA No. 6939 –
CDA Charter
March 10, 1990
RA 9520
Feb 17, 2009
RA No. 6938
Cooperative Code
of the Philippines
March 10, 1990
RA 11364
August 8, 2019

3.
Section 5. The Board of Directors. -The Authority shall have a Board of
Directors, which shall be the collegial policymaking body of the Authority. It shall
be composed of the Chairperson, with the rank and privilege of an
Undersecretary, and six (6) Members of the Board, with the rank and privilege
of an Assistant Secretary, all of whom shall be appointed by the President and
chosen among the nominees from the cooperative sector. There shall be one
Board of Director from each of the following cluster of cooperatives:

4.
• AN ACT PROVIDING FOR THE CREATION
AND ORGANIZATION OF CREDIT SURETY
FUND COOPERATIVES TO MANAGE AND
ADMINISTER CREDIT SURETY FUNDS TO
ENHANCE THE ACCESSIBILITY OF MICRO,
SMALL AND MEDIUM ENTERPRISES,
COOPERATIVES AND NON-GOVERNMENT
ORGANIZATIONS TO THE CREDIT
FACILITY OF BANKS AND OTHER
PURPOSES
• FEBRUARY 6, 2016
REPUBLIC ACT NUMBER 10744

5.
AGRICULTURE
EDUCATION
CMPL
UTILITIES
HUMAN
SERVICES
FINANCE
R E G I O N A L C L U S T E R E D O R G A N I Z A T I O N S ( R C O s )
S E C T O R A L A P E X O R G A N I Z A T I O N S ( S A O s )
C O O P E R A T I V E S
NATIONAL ALLIANCE OF
COOPEREATIVES

6.
Regional Clustered Organizations (RCOs)
Section 1. Composition of Regional Clustered Organizations (RCOs). There shall be automatic
membership of all qualified primary cooperatives, federations of cooperatives to the cluster
business activities in their Articles of Cooperation.
Unions shall join the education and advocacy cluster. In the case of sectoral cooperative
where the sector belongs.
There shall be six regional clustered organizations (RCOs) for every region, as follows:
1.Credit and Financial Services, Banking, Credit Surety Fund and Insurance;
2.Consumers, Marketing, Producers, and Logistics;
3.Human Services: Health, Housing, Workers, and Labor Service;
4.Education and Advocacy;
5.Agriculture, Agrarian, Aquaculture, Farmers, Dairy, and Fisherfolk; and
6.Public Utilities: Electricity, Water, Communications, and Transport.
Section 2. Functions. As the overall consultative and coordinating body with the Authority,
the RCO shall have the following functions:
1.To represent in the SAO the clusters in the region;
2.To promote and uphold the cooperative principles and values;
3.To conduct forums, consultations and such other necessary activities pertaining to the
reasonable fees therefor as may be permitted by the Authority;
4.To submit to the Authority reports on every activity conducted or participated; and
5.To make policy proposals and engage in negotiations to protect member’s livelihoods, jobs

7.
Sectoral Apex Organizations (SAOs)
Section 1. Composition of Sectoral APEX Organizations (SAOs). Initially, the SAO
shall be composed of one (1) representative from each RCOs and
cooperative that the Authority may identify to have representation in the SAO.
Section 2. Functions. As the overall consultative and coordinating body with the
Authority, the SAO shall have the following functions:
1.To represent such cluster in the National Alliance of Cooperatives in the
and functions;
2.To promote and uphold the cooperative principles and values;
3.To conduct forums, consultations and such other necessary activities
to collect reasonable fees therefor, as may be permitted by the Authority;
4.To submit to the Authority reports on every activity conducted or participated;
5.To make policy proposals and to engage in negotiations to protect member’s
communities; and
6.To adopt internal rules for the operation of the SAO subject to the approval of

8.
National Alliance of Cooperatives
Section 1. Composition. The National Alliance of Cooperatives (NAC) shall be
composed of representatives from the Sectoral APEX Organizations (SAOs).
represented by not more than three (3) representatives. The first two (2) shall
members while the other one (1) shall be an alternate representative.
Section 2. Functions. As the overall consultative and coordinating body with the
Authority, the NAC shall have the following functions:
1. To participate in the formulation and monitoring of the implementation of
development plan at the national level;
2. To promote and uphold the cooperative principles and values;
3. To conduct forums, consultations and such other activities necessary in the
advocacies and to collect reasonable fees therefor, as may be permitted by
4. To submit to the Authority reports on every activity conducted or
5. To disseminate relevant information, engage in public relation activities in
significance and impact of cooperatives in the society and in the economy
participation therein; and
6. To adopt internal rules for the operation of the NAC, subject to the approval

9.
The Long-Term Vision

10.
The Life We Want
14
Matatag
• Living together with family
• Time with family and friends
(work/life balance)
Panatag
• Security of place
• Resources adequate for day-
to-day needs and unexpected
expenses
• Passive income during
retirement
Maginhawa
• Freedom from hunger
and poverty
• Guaranteed mobility
• Secure home ownership
• Travel and vacation
opportunities

11.
What is a “simple and comfortable” life ?
Own at least
one car
Have enough
money for day-
to-day needs
Own a
medium-sized
home
Decent work
All children are
college-educated
Relax with
family and
friends
Business
owner
Able to take
occasional trips
around the country

12.
What is a “simple and comfortable” life ?
Own one car
Have enough
money for day-
to-day needs
Own a
medium-sized
home
All children are
college-educated
5,000
P 120,000
Gross Monthly Family Income
40,000
30,000
10,000
25,000
Income Tax
4,000
Relax with family
and friends
6,000
Able to take occasional
trips around the country

13.
“By 2040, the Philippines shall be a prosperous,
predominantly middle-class society where no one is poor.
Our peoples will enjoy long and healthy lives, are smart and
innovative, and will live in a high-trust society”
Vision for Country

14.
“Towards a Globally Competitive and
Resilient Cooperative Industry for A
Progressive Nation”.

15.
Strategic Goals
1. Enhanced Policy, Regulatory Environment and
Partnerships;
2. Improved Institutional Development, Governance and
Management;
3. Sustained Human Capital; Development among
Cooperatives;
4. Globally Competitive Cooperative Products and Services;
5. Increased Access to Finance; and
6. Increased Access to Markets and Infrastructure

16.
Enhance Policy,
Regulatory Environment
and Partnerships
Desired Outcome:
Inter-government coordination and
cooperation is strengthened to
create an enabling environment for
the growth, development and
regulation of cooperatives through
an enhanced consultative
mechanism
Strategic
Goal 1

17.
Enhance Policy,
Regulatory Environment
and Partnerships
Options for Actions
1. Policy Review and Enhancement;
2. Communication Program of Laws,
Rules and Regulations and Policies for
Cooperatives and other Stakeholders;
3. Continuing Regulatory Policy Review
and Enhancement Program;
4. Regulatory Impact Assessment; and
5. Creation of an International Network
for Registrars and Regulators with
assistance from the International
Cooperative Alliance .
Strategic
Goal 1

18.
Improved Institutional
Development, Governance
and Management
Desired Outcome 1:
Increase in the number of cooperatives
achieving excellence
Options for Actions
• Gawad Parangal (GP);
• Documentation of Cooperative Best
Practices; and
• Modeling of Cooperative Good
Governance and Ethical Practices
Strategic
Goal 1

19.
Improved Institutional
Development, Governance
and Management
Desired Outcome 2:
Deeper internalization of cooperative identity
and increased awareness by cooperative
members, officers and management of their
privileges and duties
Options for Actions
1. Cooperative Education Program (Ideology,
Philosophy, Values, Principles);
2. Inclusion of cooperative education within
the curriculum at all stages of education
and in broader promotion in the business
schools and professional bodies;
Strategic
Goal 2

20.
Improved Institutional
Development, Governance
and Management
Options for Actions
3. Development of guidelines on how to
monitor the application of the cooperative
principles by cooperatives;
4. Establishment of a cooperative knowledge
data bank to measure and demonstrate
impact, facilitate knowledge transfer and
as an advocacy tool for policy
makers/legislators; and
5. Monitoring of public reception of
cooperative messaging through surveys
Strategic
Goal 2

21.
Promote Human Capital
Development among
Cooperatives
Desired Outcome 1:
Professionalized Human Resources
Options for Actions:
1. Management and/or Technical Skills Program
for Officers and Members of Cooperatives;
2. CDA Cooperative Education and Training
Programs;
3. Accreditation of Training Providers and
Improve Access to Good Quality Training Services;
4. Partnership with Relevant Agencies on
Capability Building Projects;
5. Platform to promote and facilitate the
Participation of Women, Persons with Disabilities
(PWDs), Elderly and the Youth in Cooperatives;
Strategic
Goal 3

22.
Promote Human Capital
Development among
Cooperatives
Options for Actions
6. Inclusion of cooperative youth
development programs in the Cooperative
Development Plan;
7. Inclusion of allocation for the education
and training fund for youth programs to
support the activities, goals and plan of
laboratory cooperatives; and
8. Encouragement of cooperatives to allow a
seat in the Board of Directors for a youth
representative to incorporate the goals
and plans of the youth sector to the
cooperative leadership.
Strategic
Goal 3

23.
Promote Human Capital
Development among
Cooperatives
Desired Outcome 2:
Strengthened Co-operative Education System
Options for Actions
• Establishment of an Eco-system for
National Cooperative Education System;
• Formulation of a Strategic Cooperative
Education Development Program; and
• Establishment of a Central Library and
Historical Archive for Philippine
Cooperatives.
Strategic
Goal 3

24.
Globally Competitive
Cooperative Products and
Services
Desired Outcome 1:
Application of Appropriate Technology and
Innovation in Cooperative Enterprises
Options for Actions
1. Increased Use of ScienceTechnology and
Innovation Promotion Program; and
2. Promotion of a systemic approach to risk
management among cooperatives;
Strategic
Goal 4

25.
Globally Competitive
Cooperative Products and
Services
Desired Outcome 2:
An efficient system of data/information
gathering, storage, retrieval, processing
and dissemination is established
Option for Actions
• Creation of National Cooperative Data
and Information Repository System
Strategic
Goal 4

26.
Increased Access
to Finance
Desired Outcome 1:
Institutional framework for access to
financing will be developed and enhanced
Options for Actions
1. Financial LiteracyTraining Program for
MSMEs, Cooperatives and Overseas
Filipinos (OFs);
2. Capacity building on the preparation of
“good” proposals; and
3. Adoption of measures to stimulate
internally-generated capital
Strategic
Goal 5

27.
Increased Access
to Finance
Desired Outcome 2:
Improved policy environment to foster
alternative and non-traditional financing
Options for Actions
• Creation of an Enabling Policy
Environment to Foster both Traditional
and Non-Traditional Financing Schemes
Strategic
Goal 5

28.
Strategic
Goal 6
Increase Access to Markets
and Infrastructure
Desired Outcome:
Maximize opportunities that expand access to
existing and new markets
Options for Actions
1. Improvement in the Quality of Goods and
Services of Cooperatives byAdopting Best
Practices to Increase their Capacity to Meet
Requirements of Buyers;
2. Intensification of the Promotion and
Marketing of Cooperative Products;
3. Development of new businesses for farmers
and cooperatives like agro-tourism,
environmental services, etc. ;
4. Setting-up of a web-based information
platform for inter-coop business matching;
and
5. Support for attendance to business fora and
business matching events

29.
THE COOP SECTOR’S
10- YEAR STRATEGIC
DIRECTION

30.
An Integrated
and Transformative
Co-operative
System

31.
To build integrated
businesses imbued with co-
operative values for the
improvement of the quality
of life.

32.
1. Safe and sound financial co-operative sector
that provides efficient, accessible,
competitive financial and related services.
2. Efficient and effective co-operative
procurement, distribution, and marketing
channel for co-op products and services.
3. Increased number of co-operatives owning
and operating environment-friendly, safe,
efficient, and sustainable basic services.
4. Responsive and self-regulating national
integrated co-operative advocacy, education,
and information system.
5. Aligned co-operative businesses

33.
1. Partnership
2. Integration and
consolidation
3. Resource
Mobilization
4. Capacity building
5. Knowledge
Management
6. Advocacy &
Networking
Strategies

34.
Guiding
Principles
The universally accepted co-operative
principles and philosophy underpin
the Co-op Sector’s 10-year Strategic
Direction characterized as follows:
1. Co-op sector oriented
2. Industry focused
3. Integrated & Systemic
4. Holistic and inclusive
5. Geographic specific
6. Strength in unity and numbers
7. Sustainable

35.
Strategic Choices

36.
Strategic Choices
I. An Integrated Co-op Financial System
A. National Co-operative Bank;
B. Integrated Co-operative Central Fund;
C. Integrated e-Banking System;
D. Comprehensive Risk Management System;
and
E. Centralized Co-operative Credit Information
System;

37.
NATIONAL FINANCE COOPERATIVES
CLUSTER
%
No of registered
cooperatives
18,857 8,136 43.14 %
New (registered in 2021) 1,257 226 17.98 %
Reporting 11,145 6,313 56.64 %
large 721 624 86.55 %
medium 2,027 1,671 82.44 %
small 2,969 2,071 69.75%
micro 5,428 1,947 30.16 %
Non-reporting 6,455 1,597 24.74 %

38.
18,857
8,136
No of registered cooperatives
1 2
10%
26%
33%
31%
Category of Reporting Coops
large medium small micro

39.
COOPERATIVES IN THE FINANCE CLUSTER
TYPE OF COOPERATIVE NUMBER OF
COOPERATIVES
CREDIT COOPERATIVES 2,647
SERVICE COOPERATIVES 3
MULTI-PURPOSE
COOPERATIVES
5,420
INSURANCE
COOPERATIVES
2
COOPERATIVE BANKS 28
FEDERATIONS/TERTIARY 36
CREDIT SURETY FUND
COOPERATIVES*
29
33%
0%
66% 0% 0%
1%
0%
1%
NUMBER OF COOPERATIVES
CREDIT COOPERATIVES
SERVICE COOPERATIVES
MULTI-PURPOSE COOPERATIVES
INSURANCE COOPERATIVES
COOPERATIVE BANKS
FEDERATIONS/TERTIARY
CREDIT SURETY FUND COOPERATIVES*

40.
National
Finance
Cooperatives
Cluster
%
Membership 11,895,341 9,778,373 82.2 %
Employment 339,264 175,205 51.64 %
Surplus 15.5 Billion 14.99 Billion 96.7 %
Paid-up capital 169.9 billion 156.2 billion 91.9 %
Assets 611.17 billion 534.4 billion 87.4 %
Deposits 192 billion 187.9 billion 97.86 %

41.
11,895,341
9,778,373
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
National Finance Cooperatives Cluster
Membership
82.2 %
339,264
175,205
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
National Finance Cooperatives Cluster
Employment
15.5
14.99
14.7
14.8
14.9
15
15.1
15.2
15.3
15.4
15.5
15.6
National Finance Cooperatives Cluster
Surplus
169.9
156.2
145
150
155
160
165
170
175
National Finance Cooperatives Cluster
Paid-up capital
611.17
534.4
480
500
520
540
560
580
600
620
National Finance Cooperatives Cluster
Assets
192
187.9
185
186
187
188
189
190
191
192
193
National Finance Cooperatives Cluster
Deposits
51.64 % 96.7 %
96.7 % 87.4 % 97.86 %

42.
COOPERATIVES ENGAGED IN INSURANCE
Number of coops 2
Members 3505 cooperatives
1,051 others
Assets 7.1 billion
Paid-up capital 3.5 billion
Employees 355

43.
COOPERATIVE BANKS
Number of coops 28
Reporting 24
Non-reporting 4
Assets 23.4 billion
Paid-up capital 2.7 billion
Deposits 15.6 billion
Employees 2,064

44.
CREDIT SURETY FUND COOPERATIVES
Number of coops 29
Members Cooperatives - 366
LGUs - 29
GFIs – 35
NGOs – 6
IGLF - 3
Assets 325.17 M
Surety Covers issued 67
Amount 179.57 million
* 12 CSF coops no borrowers yet
LARGE - 88
MEDIUM – 148
SMALL- 101
MICRO - 29

45.
Challenges
• Cooperative stabilization Fund
• Cooperative Deposit Insurance
System
• Inclusion of cooperatives in
the National Retail payment
System and application for
EMI license of non-banks
• Guidelines on the operation of
cooperatives engaged in
Credit Services

46.
• APLL provisioning
• Dual/multiple membership in
relation to capacity to pay
• Regulation of Branch and satellite
operations – competition, affect
micro coops
• Compliance with CISA and Truth in
lending Act
• Rehabilitation of non-operating/non-
compliant coops
• Compliance with CDA required
reports – specially the micro coops
Challenges

47.
• High delinquency rates/ Collection of
past due accounts
• Dual/multiple officership
• Regulation on investment of
cooperatives to other cooperatives,
federations and coop banks
• Manual of operation for RCO, SAO
• Risk mitigation measures/prudential
rules
• Applicability of STEPS as a performance
standard for coops with lending services
• Coop banks cater to individual
borrowers who are members of primary
coops

48.
• Disposition of capital
contribution of dissolved coops in
coop banks
• Entry/presence of other lending
coops/companies in the area
• CSF cooperative promotion and
scaling up
• SCA for CSF coops
• Capacity building/ training on
CSFC operations
• Amendment of RA 10744/ and its
IRR

49.
… poverty is not the result of rapacious financiers exploiting the
poor. It has much more to do with the lack of financial institutions,
with the absence of banks, not their presence. Only when
borrowers have access to efficient credit networks can they
escape from the clutches of loan sharks, and only when savers
can deposit their money in reliable banks can it be channeled
from the idle to the industrious or from the rich to the poor.’
Niall Ferguson, The Ascent of Money: A Financial History of the World