A party-list lawmaker on Friday vowed to push for the creation of a Rule Book or a Cooperative

Banking statute that would govern the existence and operations of cooperative banks in the country
in the next Congress.

COOP-NATCCO party-list Rep. Cresente Paez, whose group won a seat in the 16th Congress, said
there was a need for the cooperative banking sector to come up with its own rulebook, which should
be distinct and different from that of rural and commercial banks.

Management and operations of cooperative banks clearly manifests their peculiarities because of its
nature in terms of ownership, governance, clients and profit allocation, Paez said.

The provision for the creation of the cooperative banking act is contained in House Bill 4478 filed in
the 15th Congress.

Under the measure, the Monetary Board of the Bangko Sentral ng Pilipinas (BSP) and the
Cooperative Development Authority (CDA) are tasked to formulate the necessary rules and
regulations governing the establishment and operation of cooperative banks, separate and distinct
from rural and commercial banks.

It shall be called the Rule Book governing cooperative banks and the organization of cooperative
banks shall be based on Article 97 of Republic Act 9520 otherwise known as the Philippine
Cooperative Code of 2008, Paez said.

The bill states that the administration of cooperative banks shall be an utmost concern of the Board
of Directors and Management pursuant to Article 98 of Republic Act 952000 and that the capital
requirements of cooperative banks shall be subscribed and paid by the listed primary cooperative
shareholders.

Paez said the supplemental capital for cooperatives banks shall come from the Land Bank of the
Philippines, the Development Bank of the Philippines or any government-owned or controlled bank
or financial institutions.


http://manilastandardtoday.com/2013/06/08/rulebook-on-cooperative-banks-urged/