COOPERATIVE BANK

What is Cooperative Banking ?

• Cooperative Bank shall primarily provide financial,
banking and credit services to cooperatives and their
members, although it may provide the same services to non-
members of the general public.
• Cooperative banking is retail and commercial banking
organized on a cooperative basis. Cooperative banking
institutions take deposits and lend money in most parts of the
world. 
• Cooperative banking, includes retail banking carried out by
credit unions, mutual savings banks, building societies
and cooperatives , as well as commercial banking services
provided by mutual organizations (such as cooperative
federations) to cooperative businesses.
 COOPERATIVE BANKS 
• Cooperative banks are the more popular type of
banks in the rural communities. Their role is to
promote and expand the rural economy in an orderly
and effective manner by providing the people in the
rural communities with basic financial services. Rural
banks and cooperative banks are differentiated from
each other by ownership. While rural banks are
privately owned and managed, cooperative banks are
organized/owned by cooperatives or federation of
cooperatives.
• STRENGTH OF THE COOPERATIVE BANKING MOVEMENT. 

1. SOCIAL PRINCIPLES : The Co-operative movement had emerged as an

alternative to other forms of business organisations to safeguard the interest of the
weaker section of the society. Improving the economic conditions of the members
is the primary objective of the co-operatives. The principles of co-operation and
the values of co-operation guide the co-operatives in the right direction. 
2. WIDE NETWORK : The Cooperative movement in the Philippines covers all the
three main islands of Luzon, Visayas and Mindanao. With this wide network, the
co-operatives are able to contribute much to the national economy. 
3. DEMOCRATIC CONTROL The members of the co-operative societies enjoy
equal rights of voting and participation in the administration of the society. The
general body of members, which is the supreme authority, elects the Board of
management on the basis of democracy. Elected boards should legitimately
manage co- operatives without slightest interference from external forces.
4. MUTUALITY: " Each for all and all for each" is the essence of co- operation. Through
mutual help, the common goal is achieved. 
5. PEOPLE'S SUPPORT: The success of any business depends on the customers'
support. In co-operatives the members are the beneficiaries. They support the co-
operatives, in turn the co- operatives support them.
 6. RURAL ACCESSIBILITY: Rural Penetration is an important strength. Private sector
and multinational companies do not have the accessibility to the extent the co-operatives
have in the areas we serve. The Co-operative credit institutions will offer more
accessibility in rural areas. 
7. LOCAL GOVERNMENT SUPPORT: The government, through the Department of
Finance, CDA, and LGU’s have been extending support to the cooperative movement in
many ways. Enacting laws for co- operatives, framing policy on cooperatives, allocation of
funds, appointing committees and commissions on cooperation, maintaining separate
departments for co-operation, participation in the share capital are some of the steps taken
by the government. The state's support has contributed much to the development of co-
operative banks.
8. INTEGRATION : The current banking system in the
Philippines provides for the integration of cooperatives
from primary to apex or national level. The primary level
institutions are affiliated to the next higher-level
institution. This is known as vertical integration.
Cooperatives at the same level cooperate with each other.
This is known as horizontal integration. Cooperation
among cooperatives results in integration. 
9. LEADERSHIP: In cooperatives the leaders emerge
from among the members with leadership qualities. They
guide the societies in right path in the fulfillment of the
objectives.
• Cooperative movement plays a significant role in the economy of our
country by giving great strength to the economic progress. The
Governments, both central and states, shall continue to help the
cooperatives, but they shall not interfere in the functions of cooperative.
Likewise, service providers and NGO’s who assist livelihood and cooperative
bank movements must allow for more autonomy in those helped and
restrictive provisions in the existing cooperative laws must be eliminated by
making amendments in the lines of Republic Act 6938 known as Cooperative
Code of the Philippines. Greater fiscal autonomy must be extended with a
measure of prudence and trust.
 LIST OF COOPERATIVE
BANK IN THE PHILIPPINES