In less than seven minutes, the House Committee on Banks and Financial Intermediaries has approved a measure that provides for the registration, regulation, and operation of cooperative banks.

The House panel, chaired by Quirino lone District Rep. Junie Cua passed the substitute bill on the proposed Cooperative Banking Act, presented by the technical working group tasked to consolidate House Bill Nos. 2435, 7765 and 7878, principally authored by Reps. Sabiniano Canama (COOP-NATCCO partylist), Joy Myra Tambunting (Paranaque 2nd District), and Deputy Speaker Pablo John Garcia (Cebu 3rd District), respectively.  

The TWG panel is headed by the Bangko Sentral ng Pilipinas (BSP).

"These three bills deal on the cooperatives bank proposing for the passage of the Charter to govern the registration, regulation and operation of the cooperative banks. Some of them have similar features. Earlier on, we decided that these measures be consolidated into one and we have tasked the Bangko Sentral ng PIlipinas to head the technical working group to thresh out the provisions of this Charter and we found later on that the BSP in consultation with the concerned stakeholders have been doing this for several months and their output  is essentially reflected in the desires of the authors,” Cua said. 

Cua asked the panel members if they have to scrutinize the measure section by section. 

Negros Occidental 4th District Rep. Juliet Marie Ferrer said there is no need to read through section by section. 

Navotas City Lone District Rep. John Reynald Tiangco agreed with Ferrer, saying that the panel can approve the measure. 

Cua also made the same observation, saying that "all areas have been covered.”

Garcia said the measure seeks to encourage the private sector to undertake the actual formation and organization of cooperatives.

“This bill aims to create a more robust legal regime specifically for cooperative banks. It aims to expand on the membership, powers, management, functions, and governance of such institutions,” he said. 

“It likewise contains provisions concerning board membership, quorum requirements, the setting of meetings, and director conduct to hold those in positions of responsibility true to their fiduciary capacity,” he added. 

He noted that the measure also opens cooperative banks to more allied undertakings and enriches the Philippine financial system by placing the, under the joint regulation of the BSP and the Cooperative Development Agency.

“Republic Act No. 9520, which amended the Cooperative Code of the Philippines, was passed more than a decade ago. The changing economy and times compel us to strengthen cooperative banks—institutions no doubt depended on by millions of Filipinos,” Garcia said.