Two bills proposing to further strengthen the country’s banking system have passed final reading approval in the House of Representatives.
Speaker Lord Allan Velasco lauded his Lower House colleagues for approving on third and final reading the bills regulating cooperative banks and reorganizing the Land Bank of the Philippines (Landbank).
House Bill 9541 which provides for the registration, regulation and operation of cooperative banks was approved following a 156-0-0 voting.
On the other hand, HB 10581 or the New Landbank Act received 160 affirmative votes during the resumption of plenary session on Monday, Jan. 24. No member registered a negative vote or abstention.
“We hope that through these two legislative measures, we will be able to provide more sound and sustainable financial and credit services to cooperatives and their members,” Velasco said.
He aired the confidence that the two bills, once signed into law, will play key roles in national development, especially in the countryside.
“Now, more than ever, we need to strengthen the cooperative sector as a measure to counter extreme conditions of poverty and improve the livelihoods of rural communities,” he added.
HB 9541 contains provisions of bills authored by Reps. Sabiniano Canama (COOP NATTCO Partylist); Joy Myra Tambunting (2nd District, Paranaque City) and Pablo John Garcia (3rd District, Cebu).
The bill recognizes CBs as practical vehicles for the promotion of self-reliance and economic development, and the attainment of social justice.
HB 9541 also seeks to regulate and supervise activities of CBs in order to achieve sound, stable, sustainable and efficient operations for the protection of the public interest.
Meanwhile, HB 10581 was introduced by Quirino Rep. Junie E. Cua, chairman of the House Committee on Banks and Financial Intermediaries.
HB 10581 provides for a new charter for Landbank, a government financial institution whose mandate is to promote countryside development, helping spur credit activity and financial inclusivity.
Under the bill, Landbank shall continue to provide accessible and innovative solutions to deliver timely and responsive financial and support services to rural financial institutions, as well as small farmers, fisherfolk and agrarian reform beneficiaries (ARBs).
In line with its mandate, Landbank shall allocate 5 percent of its regular loan portfolio for socialized credit to qualified small farmers, fisherfolk and ARBs, pursuant to Republic Act 10000, or The Agri-Agra Reform Credit Act of 2009.
Loans under this special socialized credit facility shall have an interest rate equivalent to not more than 75 percent of Landbank’s prevailing rates for loans to cooperatives.