Sunday, August 21, 2016


Credit Information Corporation added 5 new photos from August to the album: ROUND TABLE: COOPERATIVES MAKING A MARK IN ECONOMIC SCENE.
August ·
On August 11, 2016, as a continued manifestation of support , various cooperative federations came together for a breakfast round table discussion with the Credit Information Corporation (CIC) to discuss federation led initiatives in the area of capacity building to submit credit data to the CIC. The meeting was initiated by the President of the CIC, Mr. Jaime P. Garchitorena and Philippine Cooperative Center (PCC) Chairman Hamilcar Rutaquio.
Also in attendance at the meeting were representatives of the Philippine Cooperative Fund Federation, VICTO National Co-operative Federation and Development Center, Philippine Federation of Credit Cooperatives, Holy Cross Savings and Credit Cooperative, and Tagum Cooperative.
Topping the agenda were the challenges cooperatives faced in submission that were aggravated by misinformation from various organizations that were hesitant to comply.
Despite this, they acknowledged that most cooperatives were willing to comply with the data submission only posed a challenge during the set up phase and that the educational campaigns of the CIC were doing much to remove cooperative fears, special in the areas of potential penalties to non-compliance.
"In every public engagement, the CIC has been very clear that the CIC was not created only to collect fines. In fact, the fine structure is still being carefully reviewed as we are still determining the baseline of capacity to submit which will be the basis for a concrete rational penalty structure. This year until the end of 2017 is about establishing this baseline while building the capacity to help the submitting entities, including cooperatives and financing companies to comply." President Garchitorena reiterated.
Federation representatives did point out the low hanging benefits of CISA to the cooperatives specifically with respect to the so called migration of "professional borrowers". "smaller cooperatives are facing greater risks as we noticed a migration of bad borrowers away from large and medium cooperatives who are implementing stricter internal lending policies" "universal access by coops to the CIC database would be a critical tool in protecting the more vulnerable small coops."
In terms of reaching more borrowers, it was discussed that by contributing data to the CIC database, cooperatives were presenting themselves to larger financial institutions as viable conduits for funding as well.
"We see a lot of future interactions between coops and financial institutions looking to expand their portfolios to currently unreachable markets" Garchitorena said.
When asked about some opinions that the CISA law conflicted with other laws that cover data privacy it was explained that the disclosure of the credit information to the leaders are always upon the consent of the borrower, hence, it does not infringe any rights on privacy.
In a lighter moment, it was noted that the history of the legislation process was filled with instances of the Party list representatives of the cooperatives themselves pushing for the inclusion of the coops into the credit registry.
House Bill No. 2443 which was aimed for the benefit and inclusion of cooperatives in the economic scene. HB No. 2443 was introduced by Rep. Guillermo P. Cua of the Coop-NATCCO, which highlighted the need for inclusion of credit cooperatives in order to make cooperatives and their activities a more visible and recognized as a contributor to the economic activity of the country.
The CIC is on track with its mandate in establishing a comprehensive and centralized credit information system. Even so as a sign of continuing support to the cooperatives, the CIC is on its (X)th leg in its coop focused nationwide campaigns and technical orientation for large and medium cooperatives on how to submit credit data to the CIC. The CIC has reached X number of cooperatives with X number of participants over the last X months of the roadshow.
These roadshows also highlight the numerous benefits of credit information in line with APEC’s Cebu Action Plan last September 2015 and are held in collaboration with the United States Agency for International Development (USAID) Project COMPETE and the International Finance Corporation (IFC) World Bank.
Some of the emphasized benefits of centralized credit registry, specifically for cooperatives and its members, lower NPLs, lending more at better rates to deserving members, protecting members from over indebtedness, and understanding the financial condition of their members better.
Another upcoming roadshow information campaign is going to be held by CIC for cooperatives in Cebu on August 17, 2016.

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