Philippines Passes The Cooperative Banking Act of 2024

27 Feb 2024

Philippines | February 27, 2024 | The Cooperative Banking Act of 2024 has been approved. These banks are vital in delivering financial services to vulnerable populations in the Philippines, particularly in rural areas. They provide essential loans and credit to farmers, fishermen, micro-entrepreneurs, and small traders, thus aiding in poverty reduction. Unlike traditional banks, cooperative banks are owned, managed, and financed by primary cooperatives through member shareholdings. These primary cooperatives then borrow from cooperative banks to meet their members' financial needs. The report presents the operational revenue and deposit data for rural and cooperative banks in the Philippines as of December 2022, highlighting their significant economic influence. The legislation aims to create a strong legal foundation for cooperative banks, improving their ability to serve their target communities effectively. By regulating and enhancing their operations, the Act seeks to empower these institutions further, promoting economic growth and social justice within the cooperative sector.
 

To read the Act in its entirety, click the attachment below.