DEPARTMENT OF SUPERVISION AND EXAMINATION (BSP) CREDIT COOPERATIVE BRIEF HISTORY Basic Laws that govern cooperatives Republic Act No. 6938 – known as “Cooperative Code of the Philippines ” Cooperative Development Authority- the agency in charge of the registration and regulations of cooperatives, otherwise referred to as the CDA, the regulatory board in cooperatives. Objectives of Cooperative The primary objective of a cooperative is to provide goods and services to its members, such as: Provide maximum economic benefits to its members, Teach them efficient ways of doing things on a cooperative manner, Propagate cooperative practices and new ideas in the business management, and Allow lower income groups to increase their ownership in the wealth of this nation. Brief history of the Cooperative Founder – Mr. Platon Bruno He entered this bank under the then Department of Supervision and Examination (DSE) and initiated this credit cooperative which aimed to provide financial assistance to the personnel in the department who were prohibited from obtaining loan from banks under their supervision. December 8, 1965 – registered with the Department of Commerce and Industry under the name Department of Supervision and Examination (CBP) Cooperative Credit Union, Inc. Cooperator’s Initial Capital Seed capital was only P2,250 Initial Operation Credit Initial loan granted was P50.00 per member Governor Gregorio C. Licaros allowed to use the CB’s IBM programmed payroll deduction facility. Cooperatives Profiles On June 17, 1975 , the credit union was re-registered with the Department of Local Government and Community Development’s Bureau of Cooperative Dept. as a pre-cooperative and was confirmed by the Cooperative Development Authority (CDA) On February 22, 1978 , the cooperative made its amendments to its Articles of Cooperation and By-laws, changing its name to Kilusang Bayan for Credit, Inc. and its status from pre-cooperative to full-pledged cooperative. Further amendments as required by CDA, included the change of name to DSE (BSP) Credit Cooperative. Presidential Decree No. 78 in the late seventies hastened the growth of the credit union which allowed to accept investors from other departments and offices of the Central Bank. Investors enjoy all rights and privileges of a member except the right to vote and be voted upon. COOPERATIVE VALUES Prudential fund management Higher revenues Higher than market interest rates on deposits Higher dividend/returns on share capital Efficient service Effective operations Continue vigorous campaign for more savings among members and investors thru regular build-up of the share capital and regular savings and time deposits; Continue close monitoring of the economic development of the nation, particularly on interest rates fluctuations so as to maintain a sustainable and competitive interest rate structures of the DSE (BSP) CC lending and deposit operations; Continue study on new productive business ventures as investments outlets of Credit Cooperative members, investors and staff to further uplift their living standards; Require a high standards of qualifications for those who will seek elective position to the board and committees to maintain the high quality of management and supervisory services to the credit cooperative; and Continue adherence to the objectives and ideals of service thru cooperatives among its members/investors and staff. MODERNIZATION As the volume of transactions grew, changes and improvements in the services and operations of the credit union were affected. Computerization now provides a faster and efficient servicing of: Deposit/withdrawal Loan transaction MEMBER INTEGRATION (OPEN AND VOLUNTARY MEMBERSHIP) How does one become a member of a cooperative? The applicant shall fill-up the application for membership and other forms concerning about the application and pay at least P200.00 for the membership fee. The applicant will be asked if he/she is applying as a member or as an investor. What are member and investor? The member is the regular member as the original concept of a cooperatives says that, it is the member who enjoys all the rights and privileges and has the right to vote during election of officials the coop while the investor is the associate member who also enjoys all the rights except for voting. They only accept employees of the Bangko Sentral ng Pilipinas as members and investors. The applicant must pass all the requirements like paying the membership fee, fixed deposit and time deposit as their share capital to the coop. Here is the application for membership of DSE (BSP) Credit Cooperative APPLICATION FOR MEMBERSHIP I hereby apply for membership in the DSE (BSP) CREDIT COOPERATIVE for …………………………………I agree to obey faithfully its rules and regulations as set down in its Articles of Incorporation and Bylaws, the decisions of the general membership meetings and those of the Board of Directors. I hereby pledge to: 1. Attend and finished the prescribed membership education courses. 2. Pay the membership pay of P…………………………………… 3. Participate in the following savings program: a.) Subscribed for at least……………shares and pay for them either in lump sum or installments, under the terms and conditions prescribed in the Membership Agreement; b.) Contribute daily/ weekly/ bi-monthly/ monthly at least 2% of my monthly salary into the share capital; and c.) Contribute into the share capital at least 50% of the annual interest on capital and patronage refund due me. 4. Comply with the membership and subscription agreement. For your consideration, I hereby attach my information sheet. ………………………………………………… signature of Right hand thumbmark of Applicant ……………………. Date …………………….. Place PERSONAL DATA Name……………………………………………………Civil status:…………………………………. Birthplace:………………………………………………Date of Birth:……………………………….. Present Address:…………………………………………………………………………………………. Occupation:……………………………………………………………………………………………… Employer or Office:…………………………………………………Salary:…………………………… Other sources of income:………………………………………………………………………………… Nearest relative:……………………………………………………..Relationship:…………………….. Number of dependents:………………………………………………………………………………….. This application for membership was approved / disapproved by the board of directors in the meeting held on ……………………………………………………..20…………………… …………………………………………….. (secretary) MEMBERSHIP NO…………………………………… EARN AND SAVE THE COOPERATIVE WAY PROCESS / EVALUATION SHEET APPLICATION FOR MEMBERSHIP WITH THE DSE(BSP) CREDIT COOPERATIVE 1. PERSONAL DATA OF APPLICANT: Name:___________________________________________ Civil status:____________________ Name of Spouse:___________________________________Birthday:______________________ Birthplace:________________________________________Age:__________________________ City Adress:_____________________________________________________________________ Provincial Adress:__________________________________No. of Dependants:______________ Date Employed with BSP:____________________________ Dept.:________________________ Present position:____________________________________Mothly Basic Salary:____________ Other allowance:_________________________________________________________________ Other sources of income:___________________________________________________________ I hereby certify that the information stated above is true and correct in the best of my knowledge and belief and that I have never been convicted of any crime, dismissed from employment of charged with dishonesty or non-payment of obligation. ____________________________ (Signature over printed name) 1. PERSONAL DATA OF SPONSOR: Name: __________________________________________Data of membership with Credit Cooperative: ___________________________________Dept./ Office:_____________________ Position in BSP:_______________________________________ No. of years associated with applicant:_______________ Sponsor for the first ( ) , Second ( ) time in_____________________ I hereby certify that the above applicant has been personally known to me for the past ____________________years and I vouch for his /her good moral character, honesty and integrity. _______________________________ ( Signature of Sponsor over printed name) Date:________________________ (to be filled up by the committee) 1. ACTION TAKEN: Evaluation /Recommendation: Date:_______________________________ ________________________________ _________________________________ Chairman Member ________________________________ __________________________________ Member Member 1. Approved by the Board in its Special / regular Meeting held on________________________ DSE (BSP) CREDIT COOPERATIVE Bangko Sentral ng Pilipinas Manila Investor [ ] Member [ ] Personal Information 1. Name:_______________________________________ Dept. / Office:_______________________ (Family) (Given) (middle) Civil Status:_________Sex:___________ Tel No. ___________________ Loc.: _______________ Date of birth:_______________________ Position in BSP ________________________________ Place of Birth: ______________________Monthly Salary: ________________________________ No. Of Year of Service in BSP_____________________ Immediate Supervisor____________________________ 2.Residence Address:___________________________________Tel. No. ______________________ Provincial Address: _____________________________________ Tel. No. _____________________ 3. Spouse:_______________________________________________Monthly Salary:_______________ Employer: _____________________________________________Position: ____________________ Business Address: __________________________________________ Tel. No.__________________ 4. Dependents: Age Name School Grade / year _______________ ______________ __________________________ _______________ _______________ ______________ __________________________ _______________ _______________ ______________ __________________________ 5. Experiences in Cooperative Inclusive date Position Name of Cooperative ________________________ ________________________ ________________________________ ________________________ ________________________ ________________________________ 6. Training / seminar on Cooperative ( including SN attended ) Inclusive Date Course Description No. of Hours Place _____________________ ___________________________ _____________________ ___________________________ _____________________ ___________________________ _____________________ ___________________________ 7. Business Activities / other/ Source of income: Nature of business:___________________________________________________________________ Estimated Annual Income:_____________________________________________________________ 8. Have you ever been accused or convicted of any crime? ______________________________________ If in the affirmity, please amplify ________________________________________________________ 9. Give names of two Bangko Sentral employee, their Department / office and Telephone No, who can vouch for your character: CERTIFICATION I hereby certify that the information is true and correct to the best of my knowledge. __________________________ Signature of applicant Date: _________________ SUBSCRIBED and SWORN to before me this _________ day of ____.______ of Manila Philippines. DSE (BSP) CREDIT COOPERATIVE Bangko Sentral na Pilipinas Manila OATH OF MEMBERSHIP I _______________________________________________________________ Of the _______________________________________Bangko Sentral ng Pilipinas, Manila, having been duly accepted as member of the DSE (BSP) CREDIT COOPERATIVE, hereby solemnly swear that I will faithfully abide and observe all existing rules, regulations and policies promulgated by the cooperative. That I will bear true faith and allegiance to the same; that will obey the applicable Circulars, laws and legal orders and decrees promulgated both by the national and local government and that I will impose this obligation upon myself voluntarily, without mental reservation or purpose of evasion. SO HELP ME GOD. Manila, Philippines_______________________________ Date ________________________ signature of member ATTESTED: ____________________ President Gentlemen, I/ We have read and understood the provision of DSE (BSP) C. C. rules and regulations savings/ time deposits accounts. I/ We agree to be bound thereby as well as by the applicable rules and regulations of the Cooperative Development Act. The provision R.A. 6938 and R.A. 6939 of the Philippines shall not apply to this account. & OR Depositors Signature over Printed name Beneficiaries : Wife/ Husband __________________________________________________ Children: 1. ________________________________________________________ 2. _________________________________________________________ 3. _________________________________________________________ DSE (BSP) CREDIT COOPERATIVE SIGNATURED CARD Name ____________________________________TIN __________________ Employee No. _____________ Dept. _______________Tel. No. ___________ Res. Address _____________________________________________________ ________________________________________________________________ Tel. No. _________________________________________________________ Savings Deposit No. _______________________________________________ Mem/Inv No. ____________________________________________________ The DSE (BSP) CREDIT COOPERATIVE will please recognize any signature below in the payment of funds or other business transactions against account. 1. ______________________2. _________________ 3. _________________ & or 1. ______________________2. _________________ 3. _________________ Signature taken b: Authenticated by: Approved by: Date: REFLECTION: When we were at the BSP (DSE) CREDIT COOPERATIVES I saw there the true essence of the first principles of cooperatives, open and voluntary membership. They welcomed us gladly, it was an overwhelming experience. I more now see how members are being related to one another. I have learned that in a cooperative you are not just about to handle business but you are about to encounter new relationships to the other members and for me that’s the best thing because only shows how open is cooperative to all. I have learned also that in a cooperative you must join voluntarily meaning it is your own will to join. You must also appreciate your risk and benefits being a member. So before entering a cooperative you must know your responsibilities and privileges being a member through orientations, seminars, workshops provided by the cooperative.
DEMOCRATIC MEMBER CONTROL REPORT:
The DSE (BSP) Credit Cooperative is a Democratic Member Control. The members exercise their rights and responsibilities. Their cooperative has elected and appointed set of officers who are responsible for managing and operating their activities. The elected and appointed officials are accountable on their responsibilities as well as the members. Their members control their cooperative through the help of their officials. All members have equal rights and responsibilities. All members have equal right to vote; the policy of one member one member is being implemented. They have the right and power to choose whom they are going to vote, of course only the member has the right to vote not the investors. The responsibilities of the members are to abide the rules and policies of their cooperative, paying for loans, capital, and the time deposits at the right time and other requirements for loans. Here is the Policy Thrust/ Changes of DSE (BSP) Credit Cooperative: 1.Maintain stability and liquidity of the Credit Cooperative by having caps on placements/ investments;2.Adoption and strict implementation of the “Buffer Net Take Home Play” of the Php2, 000 for all borrowers so as not to over burden the members/ investors with dept repayment;3.Increaser of maximum Loan Redemption Insurance coverage from Php100,000 to Php150,000 for all borrowers;4.Regularization of the dividend declaration and payment on a quarterly basis for as long as there is available undivided savings or profits;5.Increase of Emergency Loan from Php10, 000 to Php15, 000;6.Arranging Group Accident Insurance coverage for its members/ investors and staff with maximum insurance benefits at low premium;7. Hiring the services of an External Auditor to make the annual audit of the assets. Liabilities and capital accounts and all the related transactions in the books, records and files; 8. Installation and upgrading of the computer system of transactions for efficient, accurate and speedy service to the members/ investors and staff;9.Hiring the outside Collection Agency on a “NO Cure No Pay” arrangement to update collection of delinquent loans;10.Arranging Medicare coverage for its members/ investors and staff at low premium;11.Increasing the single borrower’s limit from Php400, 000 to Php500, 000;12. Lengthening the maximum loan term from 4 years to 5 years;13. Reducing interest rates on loan from 13 % to 12%, 15% to 14% and 17% to 16% on loans payable for 2 years, 3 years and 4 years respectively. The members entrust for the long-term benefit of their cooperative to the elected and appointed officials.
REFLECTION:
I have learned that a cooperative is managed entirely by its members. Meaning every members are responsible for the cooperative. Each member has equal rights but every right is accompanied with responsibilities. Such of rights of a member includes, right to vote and be heard. So being a member you must exercise your right and privileges. A cooperative is accompanied with policies so every member must be aware to this and follow whatever rules being regulated to the cooperative they belong with. It is also your responsibility being a member to attend meetings and decision-making. You must be aware on the issues involving your cooperative. Whatever happens to your cooperative is your full responsibility being a member, so you must manage your cooperative with good values and knowledge.
MEMBER ECONOMIC PARTICIPATION REPORT:
Their members contribute their shares as their capital and investment on their cooperative. Their members contribute on fixed capital or share capital, on saving deposit and time deposit. These are some fees that the members must pay, the membership that is cost P200.00, processing fee which is P50.00 and the initials savings deposit that is P500.00 for a total of P750.00. Members must avail deposits because it is compulsory. The fixed deposit represents share capital which is not withdrawable. Fixed deposit composed of initial deposit of P5000.00 upon approval of membership or by installment payments as follows: the initial deposit to be paid upon approval of membership that cost P2000.00 and P3000.00 to be paid within 6 months from approval of application for a total of P5000.00. DSE (BSP) Credit Cooperative encourages their members to contribute to the fixed deposit build-up or capital build-up. Fixed deposit can get from the 2% of the principal amount deducted from loan proceeds. The maximum amount of fixed deposit is P15, 000.00. Savings deposit is also compulsory. The minimum amount of savings deposit that the members can save is P500.00. The additional maintaining balance of P 100.00 per type of loan is availed. The minimum amount of time deposit is P5000.00 with the minimum of term of 30 days. The rate of interest varies based on prevailing rates. DSE (BSP) Credit Cooperative also offers loans for their members. There are types of loans that the members can avail: emergency loan which is P15, 000 that is payable in one year, educational loan which is P20, 000 that is payable in one year, appliance loan that also cost P20, 000 which is payable one year up to five years. A borrower may avail a special appliance loan for P50, 000 under which case borrower can no longer avail the educational loan. If special appliance loan is availed, the P50, 000 is payable one year up to five years. Another type of loan is regular loan with the term one year to five years. Livelihood loan and one-to-one loans is the assignment deposits (CTDS with KBCI only) (excluded from SBL) 80% of Face Value of CTD is payable in lump sum. Ceiling for Regular Loan: New members/investors whose membership with the Credit Cooperative is five (5) years or less, the loanable amount shall be equivalent to month basic salary for every year of service but not to exceed P100, 000.00, subject to all other conditions. Exception is the emergency loan; for members/investors whose membership with the Credit Cooperative is more than five (5) years, the loanable amount shall not exceed P300, 000.00, subject to all other conditions. As members avail loans on Credit Cooperative, the cooperative obtained net income from the interest that the members are paying. It is given back to members and investors in the form of dividend. Quarterly cash dividends are declared/ granted to members and investors from the income earned during the quarter based on fixed deposit. Patronage refund on interest collected from loans during the year.
REFLECTION:
Members of DSE (BSP) Credit Cooperative have share capital that they should pay equally. This will be their ownership pay and investment in the said cooperative. Each member can avail services through savings deposits, time deposits and loans. The cooperative offers different kinds of loans. Members may get loans such as emergency loan, educational loan, and some other loans that will provide the needs of all its members. Through this I more realize that a cooperative can really help all its members in all aspects of life it may be socially or even financially. I could much say that a cooperative is a shelter of every member that could really help its member grow even more and better.
MEMBER PARTICIPATION IN CO-OP GOVERNANCE Report:
DSE (BSP) Credit Cooperative is autonomous and independent as an organization. It does not accept any grants and donations from any institution, in fact, they are the one who donate on the schools and any projects supported by them. It only depends on the agency that registering and monitoring the cooperatives which is the Cooperative Development Authority. They are not under and not depending on the government. They are working as a cooperative with freedom. The officials and the members are the one are the one who control their cooperative. They have the freedom to do whatever they want on their cooperative. DSE (BSP) Credit Cooperative stands as autonomous and independent in the past years and in the present. DSE (BSP) Credit Cooperative proposed to become one of the largest and best-performing credit cooperative in the country because of being self-help organizations. Its success can be well attributed to the unfailing devotion of its group of officers and directors and the overwhelming support of its members and investors.
REFLECTION:
Every cooperative is autonomous and independent meaning it is a self-ruled organization. Every decisions being made in the cooperative is a responsibility and a right of every member. So nothing has the power to influence every member in making decisions. Accepting grants and donations may be allowed in the cooperative but always make sure that the cooperative is not being manipulated by other people or institutions. Your cooperative must always exercise you rights to be free in all aspects.
MEMBER PARTICIPATION IN CO-OP EDUCATION, TRAINING AND INFORMATION REPORT:
DSE (BSP) Credit Cooperative held education and training seminars for their members, employees, and for the management staff for their awareness and the development of their abilities as a part of their cooperative. DSE (BSP) Credit Cooperative is providing a pre-membership seminar just like other cooperatives for the new members to familiarize the cooperative, the principles, the policies, the activities, the operations, the services its offers and their rights, privileges and also their responsibilities as a member. DSE (BSP) Credit Cooperative primarily concern is their officials, the board of directors, committees, manager and the management staff on providing seminars. According to one of their staff they are providing seminars and trainings to the members rarely because they spend their funds more on the activities and operations of the cooperative. The Cooperative Development Authority (CDA) is the one who provide seminars for them; example of the seminar is about the taxation. The CDA inform them about the taxation.
REFLECTION:
In a cooperative every member must be equipped with continuous education. The cooperative must provide seminars, workshops and trainings to its entire member so that the members will have enough knowledge to manage the cooperative. Through this, I have learned that education is a lifetime. It should be continuous; you should not stop on learning. You should encourage yourself being a member to learn and learn new things. You should not be tired on learning.
MEMBER PARTICIPATION IN CO-OP CONNECTIVITY PROGRAM REPORT:
DSE (BSP) Credit Cooperative are operating and working with freedom in collaboration of other organizations that they are helping. Though they are not operating under any institution or government, they extend their services to other cooperatives. Like the Metro South Cooperative which have deposited to them P200, 000. DSE (BSP) Credit Cooperative serves as a bank that serves not only its members but also the non-members who let them borrow productive loans for their business proper. DSE (BSP) Credit Cooperative operates with the help of the Bangko Sentral ng Pilipinas. They help small cooperatives through granting loans and extending its services. They consider their past activities and services that they have done, in relation to that they have future plans/prospects in the next five years to strengthen and support their cooperative. The plans/prospects in the next five years are the following: Continue prudential management of the DSE (BSP) Credit Cooperative’s investible funds; Continue vigorous campaign for more savings among members and investors thru regular build-up of the share capital and regular savings and time deposits; Continue close monitoring of he economic development of the nation, particularly on interest rates fluctuations so as to maintain a sustainable and competitive interest rate structures of the DSE (BSP) Credit Cooperative lending and deposit operations; Continue study on new productive business ventures as investment \s outlets of the KBCI members, investors and staff to further uplift their living standards; Require high standards of qualifications for those who will seek elective position to the board and committees to maintain the high quality of management and supervisory services to the credit cooperative Continue adherence to the objectives and ideals of service thru cooperatives among its members/ investors and staff.
REFLECTION:
Every cooperative must exercise networking. They must have connectivity to any other types of cooperative. Cooperative does not exercise competition to each other but exercises cooperation. You must treat every other cooperative as your own organization. You must learn how to extend your arms into any other types of cooperative. Be their help in times of their needs and failures. Through this, I more realize how the spirit of cooperativism being exercise in all kinds of cooperatives. It’s overwhelming to know that in all aspects you have someone to run on in times of failures.
MEMBER PARTICIPATION IN CO-OP SOCIAL RESPONSIBILITY REPORT:
The DSE (BSP) Credit Cooperative is under the Bangko Sentral ng Pilipinas. DSE (BSP) Credit Cooperative is a cooperative that is institutional based. It is not placed in a particular community where the people of the community benefit from it. This cooperative benefits only its members and its investors but it also helps other institutions, they donate funds on the schools and other program for the poor is supported by them. DSE (BSP) Credit Cooperative’s primarily concern is the benefit of its members economically, socially, and culturally. Even it is a cooperative that is institution based its still help other people particularly its members who can extend their help to their community by operating a business at reasonable cost on their community.
REFLECTION:
I have learned that in cooperative they are not only focus on providing the needs of its members but also they really have concerned for the community they belong with. That they provided programs that could help other institutions. They make services that concern the people around them. This is really shows that cooperatives were established for the sustainable development of its members and also the community.
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