Saturday, July 25, 2015


I am afraid that the status of computerization/non-computerization will be the greatest stumbling block to the compliance with the Credit Information System Act (CISA) of cooperatives with credit functions.

As we may know by now, cooperatives with lending functions are classified as "submitting entities" under CISA.  Meaning, they have to submit the database of the cooperatives' borrowers to the Credit Information Corporation (CIC), created to implement CISA.

This is for the creation and maintenance by CIC of a national, centralized credit information about all loan borrowers in the country, be they from banks, credit card companies, insurance companies (yes, even mutual benefit associations), and of course, credit cooperatives, as well as many others.

One day, I personally went to CIC.  I was told that based on the CIC-determined format, cooperatives, and all other "submitting entities" will send via Internet that database of their borrowers.  And they will be required to update, via online, such database, on a monthly basis.  Yes, you heard that right, on a monthly basis.

And there is the rub.  How many of the 7, 248 (68% of the 10,675 cooperatives who submitted mandatory reports to CDA in 2014) are computerized?  Maybe the big credit cooperatives are computerized.  Just how many are these, CDA should have the data.

Data presented during the Co-op Financial Cluster Summit held in Tagaytay City say that there are some 6.5 million member of cooperatives with savings and credit functions. There are 49 federations (48 out of 102) with savings and credit functions; there are 2 insurance cooperatives.  It was not mentioned how many cooperatives have their own mutual benefit associations (mbas), licensed by the Insurance Commission.  I guess there are 30 such MBAs, more or less.

If it is any indication, it was reported informally in a radio guesting that CDA's experience in requiring cooperatives to submit via online/internet to CDA their annual Cooperative Annual Progress Report (CAPR) netted some 8, 000 reports.  This online submission was required by CDA on April 6, 2015. And we are talking here of a field of some 24, 000 registered cooperatives.

From this figure, we can infer that less than the above number sent their reports via their office computers.  There was a transitory proviso the the CDA requirement that the cooperatives'  manual reports may be requested to be encoded and sent via CDA's computers in the extension offices.

This is not saying that cooperatives are strangers to the operation of credit bureaus.  These institutions, by the way, maintains a negative (delinquent) and positive (good) list of borrowers.  I browsed from the milestones of CIC, that in 2006 (preceding CISA of 2008), there were 12 cooperatives which operated a credit bureau based in Ozamis, in Mindanao.  And that there was one servicing the needs in the Visayas, which was operational in 2012.

Anyway,  If it is any help, and if you wish to request for a briefing on how cooperatives may comply with CISA, you may contact/coordinate with any of the following:  Mr. Manuel S. Abad, Chief Marketing Specialist of CIC. His contact info: tel. (+632) 8931971; Fax: (+632) 893-7159; Mobile: +63906-486-4977; e-mail:




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