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The Bangko Sentral ng Pilipinas (BSP) and the Cooperative Development Authority (CDA) have signed a Memorandum of Agreement (MOA) for collaborative oversight and supervision of cooperatives involved in electronic money issuance and payment system operations, including ATM deployment.
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. BSP Deputy Governor Mamerto E. Tangonan (rightmost) and CDA Board Member and Assistant Secretary Myrla B. Paradillo (leftmost) joined as witnesses. I Photo: Bangko Sentral ng Pilipinas
BSP Governor Eli M. Remolona, Jr., and CDA Chairman Joseph B. Encabo inked the MOA at the BSP Head Office in Manila during the celebration of National Cooperative Month in October.
The MOA outlines the arrangement between the BSP and CDA for simultaneous oversight and regulatory approaches, as well as the exchange of information to facilitate the fulfillment of their respective mandates.
"This collaboration is essential for developing a comprehensive regulatory framework that takes into account the unique challenges and opportunities faced by the authorities. This cooperation will result in regulations that are proportionate, relevant, and future-proof. It will also prevent regulatory arbitrage and enhance the transparency and accountability of the cooperative sector," said BSP Governor Eli M. Remolona, Jr.
The National Payment Systems (NPS) Act mandates the BSP to exercise oversight over NPS, which includes the aforementioned cooperatives.
The cooperative oversight initiative aims to coordinate the efforts of the BSP and government agencies to prevent regulatory gaps, inefficiencies, duplication, and inconsistencies.
Onboarding cooperatives in the NPS align with the BSP's Digital Payments Transformation Roadmap and National Strategy for Financial Inclusion. Recent data reveals that financial cooperatives are present in 212 or 13 percent of unbanked municipalities.
