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Expansion of co-op agency functions pushed.

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| January 01, 2005 | COPYRIGHT 2005 Financial Times Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

(From Philippine Daily Inquirer)

Byline: Michelle V. Remo

THE DEPARTMENT of Finance (DOF) is pushing a bill that will grant regulatory powers to the Cooperative Development Authority (CDA) over credit cooperatives to address problems on delinquency and to boost micro-financing in the country.

A bill that was recently filed in Congress sought the expansion of functions of the CDA to include regulation of credit co-ops.

At present, the CDA merely implements developmental programs for cooperatives, including facilitation of access to credit.

"The mandate of the CDA is vague. Through the bill, we want to give the CDA a clear function of regulating credit cooperatives," said the finance official.

The DOF official said a regulatory agency for co-ops was necessary to address the proliferation of delinquent cooperatives. CDA cannot anymore function merely as a support agency to co-ops.

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