Diokno: Coop banks remain sound

The cooperative banking industry remained sound and stable despite the pandemic, the highest monetary authority in the land said.

Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno listed industry’s strong metrics as of the first half of the year, reflecting its strength amid the health crisis.

“At end-June 2021, cooperative banking resources reached P23.9 billion, which accounts for 0.12 percent of the Philippine banking system’s total assets of P19.8 trillion,” Diokno said in a virtual briefing on Wednesday.

“Moreover, its average capital adequacy ratio stood at 19.7 percent, higher than the required minimum of 10 percent,” he added.

Despite representing a small portion of the banking system, cooperative banks play a crucial role in delivering banking services to those outside urban areas, the BSP chief said.

“Among their clients are hundreds of primary cooperatives and their individual members who usually have limited, or no access to banking services, other than those provided by cooperative banks,” he said.

“As id end-September 2021, there are 24 cooperative banks in the country with a network of 145 branches and other offices. Cooperative banks are present in Luzon, Visayas and Mindanao,” he added.

Coop bank bill

While at it, monetary authorities expressed their support for the passage of the Cooperative Bank bill.

“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,” Diokno said.

“The legislative reform is expected to further promote the safety and soundness of the country’s cooperative banking industry,” he added.

Key features of the bill include the provision of incentives and privileges to cooperative banks as well as the automatic eligibility with the Philippine Guarantee Corporation among others.

*****
Credit belongs to : www.tribune.net.ph

Check Also

2022 poll candidates urged to avoid holding sorties

Headlines 2022 poll candidates urged to avoid holding sorties MANILA, Philippines — The Department of …

error: Content is protected !!