e-Forum Credit and Financial Cluster, Banking and Insurance July 8, 2020

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ISSUES
AND CONCERNS
IN CREDIT SERVICES
OF COOPERATIVES

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-a Federation of Coops with nationwide area of
operation and registered on September 17, 1992
-Programs and Services
Financial, Agriculture and Marketing,
Capability Building, Tourism and Social Services
(FACTS)
- Institutions established
- NSCC Multi-Purpose Cooperative
- NSCC Mutual Benefit Association, Inc.
Hello! I’m Divina Quemi , CEO from

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■ THE CREDIT PROGRAM OF COOPERATIVES
■ ISSUES AND CONCERNS
■ OPPORTUNITIES FROM CHALLENGES
ISSUES AND CONCERNS
IN CREDIT SERVICES OF COOPERATIVES

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THE CREDIT SERVICES
OF COOPERATIVES
- promotes and undertakes savings and lending
services among its members. It generates a
common pool of funds in order to provide
financial assistance and other related financial
services to its members for productive and
provident purposes (CDA);

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1. WHERE TO GET FUND FOR THE PROGRAM?
• CBU WITHIN THE COOPERATIVE MEMBERS
• APPLY LOAN AT FINANCIAL INSTITUTIONS
• DEVELOPMENT DEPOSITS FROM OTHER COOPERATIVES
• CREATE TIE-UP PROGRAMS WITH DIFFERENT SECTORS LIKE LGUs and
NGOs
What are the Issues and Concerns in Credit
Services

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2. HOW TO ATTRACT MEMBERS TO PATRONIZE LOAN
PROGRAMS?
• WHAT ARE THE TYPES OF LOAN TO BE OFFERED
• CRITERIAS TO BE IMPLEMENTED
• RATES OF LOAN PROGRAM
• WAYS OF PROMOTING THE LOAN PROGRAM
MICROFINANCE COMMERCIAL HOUSING
EDUCATION LOAN TECH
SALARY LOANS AGRI - LOANS
LGU TIE-UP LOANS

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3. HOW TO ENCOURAGE GOOD REPAYMENT
PERFORMANCE
• LOAN TERMS AND CONDITIONS
• TARGETS AND MONITORING
• LOAN COLLECTION STRATEGIES
4. HUMAN RESOURCE CAPABILITY
• TEAM PERFORMANCE MONITORING
• TRAININGS NEEDED
• WAGE AND INCENTIVES
• CAREER PATH
What are the Issues and Concerns in Credit
Services

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5. DOCUMENTATION AND RECORDING
• LOAN DOCUMENTS
• ACCESSIBILITY OF LOAN DOCS
• APPROPRIATE FINANCIAL SYSTEM
6. COMPETITION
• WHAT IS YOUR COOPS’ COMPETITIVE ADVANTAGE
• WHO ARE YOUR COMPETITORS
• BANKS
• CREDIT CARDS
• OTHER COOPS
• MICROFINANCE INSTITUTIONS
What are the Issues and Concerns in Credit
Services

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7. HOW TO ADJUST WITH THE NEW NORMAL
• HEALTH PROTOCOLS
• RE-PLANNING AND RE-TARGETING
• WORK MODIFICATIONS FOR THE SAFETY OF MEMBERS AND
EMPLOYEES
• UTILIZING SOCIAL MEDIA PLATFORMS TO CONTINUOUSLY PROMOTE
PROGRAMS AND SERVICES
8. COMPLIANCE TO REGULATIONS
• CREDIT INFORMATION SYSTEM ACT LAW
• BAYANIHAN TO HEAL AS ONE ACT
• IMPOSITION OF MORATORIUM OF PAYMENT
• BIR REGULATIONS
• TIN NUMBER OF MEMBERS
• DOC STAMPS TO LOAN DOCUMENTS
• TAX EXEMPTION ISSUES
What are the Issues and Concerns in Credit
Services

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9. CREDIT RISK MANAGEMENT
• BACKGROUND CHECKING
• LOAN SECURITY
• COLLATERALS
• PDC AS FORM OF PAYMENT
• ATMS AS FORM OF PAYMENT FOR GOVT EMPLOYEES
• MULTIPLE LOANS OF MEMBERS
10. FRAUD CASES OF OFFICERS AND EMPLOYEES
• EMPLOYEES/OFFICERS FOUL PRACTICES
• NON-REMITTANCE
• CONNIVANCE ON LOAN APPROVAL AND RELEASE
• GHOST BORROWERS
• RIDE-ON LOANS
• MIS SYSTEM MANIPULATION
What are the Issues and Concerns in Credit
Services

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11. LITIGATION PROCEDURES RELATIVE TO
LOAN SETTLEMENT
• SMALL CLAIMS
• FORECLOSURE OF PROPERTY
• FILING COURT CASES
What are the Issues and Concerns in Credit
Services

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12. RELIEF OF COOPERATIVES ON COMPLIANCE TO
COOP PESO RATIO FOR YEAR 2020
13. ISSUE ON CAPITALIZATION – IF CDA CAN HELP
COOPERATIVES STRENGTHEN ITS PARTNERSHIP
WITH LGUs, NGAs
14. PARTICIPATION TO BALIK PROBINSYA
PROGRAM OF THE GOVERNMENT – HOW CAN
COOPERATIVES ENCOURAGE MEMBERSHIP OF
THOSE BALIK PROBINSYA INDIVIDUALS

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● IDENTIFYING AND ADDRESSING
ISSUES AND CONCERNS OF CREDIT
OPERATION BENEFITS THE
COOPERATIVE
○ IMPROVEMENT OF SYSTEMS AND
PROCEDURES
○ BETTER QUALITY OF LOAN PORTFOLIO
AND COLLECTION
○ PROTECTION OF THE COOP AND
MEMBERS
CONCLUSION

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THANK YOU
& KEEP SAFE!