Mr. Emmanuel E. Juquiana e-Forum on Credit and financial Services, Banking and Insurance July 8, 3030

1. Mr. Emmanuel E. Juquiana

2. TheCooperative Banking, Region 1:
The La Union Model and Experience

3. A.Its Mandate and Purpose
B.Stockholders and Members – Regular and Associate
C.Assessment and Evaluation: Impact of the COVID-19
Pandemic
c.1 On Net Income
c.2 On Networth
c.3 On Net Loans and Discounts
c.4 Deposit Liabilities
c.5 Due from Banks and Investment on Securities
c.6 On Allocation and Distribution of Net Surplus

4. PE
D.Relief and Recovery Programs for Those Affected
by the Pandemic
1. BSP Relief Measures Relief Program Under Memo No.
M-2020-008 dated 14 April 2020 as amended by Memo
No. M-2020-032 dated 27 April 2020.
a. Loans, Advances and Other Credit Accommodation
to Officers;
b. Grant of temporary grace period for payment of
matured loans and due loan-amortization during
the ECQ period;

5. PE
c. Non-imposition of monetary penalties for delays incurred
in the submission of all supervisory reports due from
March 8, 2020, the date of proclamation of National
Health Emergency under Presidential Proclamation No.
922;
d. Staggered booking of allowance of credit losses over a
maximum period of five (5) years subject to BSP prior
approval;
e. Moratorium, without penalty, on monthly payments due to
BSP for a period of six (6) months from March 8, 2020;
f. Non-imposition of penalties on legal reserve deficiencies;

6. g. For All rediscounting banks
1. Grant of a 60-day grace period to settle outstanding
rediscounting obligations with the BSP as of
March 8, 2020;
2. Allow the restructuring of rediscounting obligations
with BSP;
3. Allow the relaxation of eligibility requirement by
excluding the criteria on reserve requirement for
renewal of rediscounting line;

7. 2. Coop Bank of La Union Board Approved Relief and
Recovery Program
a. For Depositors and Clients;
b. For Loan Borrowers and Sales Contract Receivable;
c. For Officers and Staff (Allowance, hazard pay, etc);
d. For Stockholders (Member-cooperative);
e. For National Government Agencies (DA-ACPC) and
LGUs;
f. Third Party Partners (Security, Janitorial, Bangkoop)

8. E. CONCLUSION
F. ISSUES AND CONCERNS
1. What are the CDA plans and programs to assist cooperative
banks recover and mitigate the negative impact of the
pandemic
to its operations;
2. Are coopbanks, allowed to utilize the reserve fund to cover
losses during this time of emergency? What are the limits and
threshold of its utilization? Statutory funds are booked as part
of the bank’s networth, thus charging of this account reduced
total networth.

9. 3. Are cooperative banks represented in the finance cluster
consultative body for formulation of policies, rules and
regulations as envision by CDA?
4. Regulatory relief on submission of reports.
5. Update on the Cooperative Banking Law.
6. Possibility of mandating cooperatives within the Province of
La Union to be member-stockholders of the cooperative
bank.

10. THANK
YOU