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Licensing of New Cooperative Banks Re-Opened

09.03.2003

To better serve the credit and other banking needs of cooperative members and other small business entrepreneurs particularly those in the countryside, the Monetary Board, in its regular meeting on 28 August 2003 approved the establishment of new cooperative banks as an additional exemption to the general moratorium on the establishment of new banks.

In arriving at its decision, the Monetary Board carefully balanced the government’s goal to have at least one (1) cooperative bank in every province with the need to ensure viable operations of cooperative banks as well as the need to have a stable banking system.

In order to better ensure that new cooperative banks that may be formed will be viable financial institutions, the Monetary Board decided to increase the lowest minimum private paid-in capital from P1.25 million to P5 million. Thus, the minimum private paid-in capital required for new cooperative banks will still be P20 million for national cooperative banks, P20 million for local cooperative banks to be established in Metro Manila, P10 million for those to be established in the cities of Cebu and Davao, while it will now be P5 million for those to be established in other places.

Likewise, the Monetary Board decided to apply the two (2) independent directors requirement and the “fit and proper rule” for directors and officers in the interest of promoting better corporate governance and more competent management.

Other requirements call for the organizers of new cooperative banks to submit a viable business plan together with projected financial statements for the first three years of operations of the cooperative bank to be established supported by reasonable assumptions. The business plan should contain the following minimum information:

a.   marketing plan describing how the bank expects to generate viable and sustainable business;

b.   description on how the bank will be organized and controlled internally to ensure that an appropriate system of corporate governance will be in place;

c.   adequate operational policies and procedures, internal control procedures and management expertise to operate the proposed bank in a safe and sound manner.

The decision of the Monetary Board is expected to pave the way for the establishment of more cooperative banks in addition to the 46 that are presently operating in 46 provinces plus 1 national cooperative bank based in Cebu City.

Table.

Existing Cooperative Banks Place of Operation

National

 

1.   National Teachers and Employees CB 

Cebu

Provincial 

 

1.      Agusan Del Sur Coop Bank  

Agusan Del Sur

2.      Agusan Norte-Butuan Coop Bank  

Agusan Del Norte

3.      Aklan Coop Bank  

Aklan

4.      Aurora Coop Bank  

Aurora

5.      Bataan Coop Bank 

Bataan

6.      Benguet Coop Bank  

Benguet 

7.      Bohol CRB  

Bohol 

8.      Bukidnon CRB   

Bukidnon

9.      Bulacan CRB   

Bulacan

10.    Cagayan Coop Bank  

Cagayan

11.    Camarines Norte Coop Bank  

Camarines Norte

12.    Camarines Sur Coop Bank  

Camarines Sur

13.    Camiguin Coop Bank  

Camiguin

14.    Capiz Settlers CRB

Capiz

15.    Cavite Coop Bank  

Cavite

16.    Cebu Coop Bank  

Cebu

17.    Countryside CB Batangas  

Batangas

18.    Davao Del Sur Coop Bank  

Davao Del Sur

19.    Davao Oriental Coop Bank  

Davao Oriental

20.    First Isabela CRB  

Isabela

21.    First United Farmers

 Laguna

22.    Ilocos Norte Coop Bank 

 Ilocos Norte

23.    Ilocos Sur Coop Bank  

Ilocos Sur

24.    Iloilo Coop Bank 

 Iloilo

25.    La Union Coop Bank  

La Union

26.    Lanao Del Norte Coop Bank  

Lanao Del Norte

27.    Leyte CRB  

Leyte

28.    Metro South Coop Bank  

Metro Manila

29.    Misamis Oriental CRB  

Misamis Oriental

30.    Mt. Province Coop Bank -

Mt. Province

31.    Negros Oriental Coop Bank  

Negros Oriental 

32.    North Cotabato CRB  

North Cotabato

33.    Nueva Ecija CRB  

Nueva Ecija

34.    Nueva Viscaya SNCRB  

Nueva Viscaya

35.    Occidental Mindoro Coop Bank  

Occidental Mindoro

36.    Palawan Coop Bank  

Palawan

37.    Pampanga Coop Bank  

Pampanga 

38.    Pangasinan Coop Bank 

Pangasinan

39.    Quezon Province Coop Bank  

Quezon Province

40.    Sorsogon Provincial Coop Bank  

Sorsogon

41.    Southern Leyte Coop Bank 

 Southern Leyte

42.    Surigao Sur CB  

Surigao Del Sur

43.    Tarlac CRB  

Tarlac

44.    Zamabales CB  

Zambales 

45.    Zamboanga Sur CB  

Zamboanga Del Sur

46.    Zamboanga Norte Coop Bank  

Zamboanga Del Norte

      

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