ASTUDY OF THE OPERATIONS AND PERFORMANCE OF SELECTED CREDIT COOPERATIVES IN THE PHILIPPINES Julius P. Relampagos, Mario B. Lamberte and Douglas H. Graham WORKING PAPER SERIES NO. 90-23 November 1990 dine Institute for Development StudiesACKNOWLEDGEME! We wish to acknowledge the financial support provided by the World Council of Credit Unions (WOCCU) and the Philippine Federation of Credit Cooperatives, Inc. (PFCCI). In particular, Mr. Al Harding (WOCCU) and Fr. Benedicto Jayoma (PFCCI) have been instrumental ‘in making this study possible. We also acknowledge the invaluable assistance extended to us by Ms. Lucy Furo ,Ms. Helen Abril and the rest of the PFCCI staff. This study would not have been completed without the cooperation of the managers, officers, and members of the twelve (12) credit cooperatives included in the study. It has benefited from the assistance extended by the PECCI regional officers and coordinators, who administered the member- ship questionnaires, and from the PIDS technical support provided by Mervin Samadan, Rowena Roxas, Cris Jovellanos, Glenn Sipin, Nitz Tolentino, and Merle Galvan. ‘The AuthorsTABLE OF CONTENTS L. Introduction. ‘A.The Credit Cooperative Movement in the Philippine B. Objectives and Scope of the Stu C. Data Collection. 1, Background ofthe Twelve Credit Cooperatives. Share Capital Subscription D Savings Mobilization .. E.Lending Policies and Practices F, Loan Renewals/Refinancing and Delinquency Issues G.Liquidity Management Issues. HiInterlending Scheme I. Relationship with Banks.. J. Relationship with a Federation and Other Institutions.. I, Financial Status ofthe 12 Credit Cooperatives... ‘A.Growth Performance... B.Operations and Problems. Summary. IV. Socioeconomic Profile of Sample Respondents. ‘A.General Information B.Occupation and Income C-Household Status. Respondents’ Profile Upon Joining the Credit Cooperative. E. Profile of Respondents Engaged in Farming.. F.Summary. V. Borrowing and Saving Patterns. ‘A Saving in the Credit Cooperative. B.Borrowing from the Credit Cooperative. C.Membership in the Paluwagan.. D.Saving and Borrowing from the Bank.. E.lnformal Credit F.Lending Activities. GSummar; VI. Demand for Fixed Deposit and other Issues... ‘A.Demand for Share Capital... B Deposit Instruments Offered... Cilnerlending Scheme ... ‘VIL. Summary, Conclusions and Recommendations...