The House of Representatives approved a measure that provides for the registration, regulation, and operation of cooperative banks.
During the plenary session, a total of 156 lawmakers voted to approve House Bill 9541, which provides for the establishment, management, and regulation of cooperative banks under the supervision of the Bangko Sentral ng Pilipinas as a primary regulator, conformably with the provisions of the General Banking Law of 2000.
The bill seeks to expand the membership of cooperative banks by opening up the sector to foreign cooperatives.
The bill seeks to expand the membership of cooperative banks by opening up the sector to foreign cooperatives, provided that such foreign cooperatives may not own more than 40 percent of the total outstanding voting shares of a cooperative bank.
It shall authorize cooperative banks to engage in a wide range of financial services such as extending credit, deposit taking, discounting and rediscounting, correspondent banking, dealing in debt securities, acting as collection agent, dealing in foreign exchange transactions, acting as government depository, and conduit bank for government lending programs, and participating in government allocation programs geared towards the promotion of financial inclusion.
The proposed measure shall also authorize cooperative banks to invest in equities of allied undertakings such as banks, financial institutions, and non-bank financial intermediaries; warehousing and other post-harvest facilities; distribution of farm implements and equipment; transportation of agricultural products, leasing, Automated Teller Machine network operations, public transportation, and financial technology.
The bill prescribes limitations on the lending authority of a cooperative bank by imposing on private borrowings a ceiling of 25 percent of its unimpaired capital and surplus.
It seeks to grant incentives and privileges to cooperative banks.
It seeks to grant incentives and privileges to cooperative banks including, among others, exemption from all national and local taxes, fees and charges as provided under the Cooperative Code and related laws, subject to certain conditions; exemption from publication requirements on foreclosed lands, and; exemption from maximum landholding limits under existing agrarian laws.
