The Bangko Sentral ng Pilipinas (BSP) and the Cooperative Development Authority (CDA) signed an agreement to work together to oversee cooperatives that offer electronic money and payment services, including ATM deployment.
The agreement sets out how the BSP and CDA will work together to regulate these cooperatives and exchange information to fulfill their respective mandates.
Eli Remolona
BSP Governor Eli M. Remolona, Jr. said,
“This collaboration is crucial in developing a comprehensive regulatory framework that considers the unique challenges and opportunities authorities face. This collaboration will result in regulations that are proportionate, relevant, and future-proof. The approach will also avoid regulatory arbitrage and enhance the transparency and accountability of the cooperative sector.”
The agreement is also expected to support the BSP’s Digital Payments Transformation Roadmap and National Strategy for Financial Inclusion, as financial cooperatives are present in 212 (13%) unbanked municipalities in the Philippines.
Featured image: Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona, Jr. (third from left) and Cooperative Development Authority (CDA) Chairman and Undersecretary Joseph B. Encabo (second from left) sign the Memorandum of Agreement on the Cooperative Oversight Arrangement on 18 October 2023. Joining them as witnesses are BSP Deputy Governor Mamerto E. Tangonan (rightmost) and CDA Board Member and Assistant Secretary Myrla B. Paradillo (leftmost).
