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18 years has been a long way...
much has been accomplished.
Yet more remain to be done. The challenge is on
Today, 18 years since its founding on November 18, 1991- the first Cooperative Bank organized during the watch of quondam President, Corazon C. Aquino has gone a long way. Its paid-up share capital and assets of barely P 1.250 Million, with 20 primary cooperatives as incorporators, rose to P 29.20 Million. Its membership base reached 84 with 864 preferred individual stakeholders putting up an investment portfolio of P4.02 Million. The bank's total resources phenomenally increased to P 263.242 Million (as of 7-31-06 figures).
From a small area of 40 sq.m. leased to the bank by the Quezon Provincial Government Office, the bank constructed its 2 ½ storey-building which served as its head office. From there, the Coopbank over time expanded by establishing a branch for each of the four Districts of Quezon—
1995, July 4 — 1 in Gumaca of the 4th District of Quezon
1997, July 2 — 1 in Lucban of the 1st District of Quezon
1998, April 20 - 1 in Catanauan of the 3rd District of Quezon
2004, Sept. 2 – 1 in Lucena City of the 2nd District of Quezon ,
“Above all things, the Coopbank members, members of the board, officers , management staff and the rest of its work force down
the line shall always keep the Lord, our God, as the focal point of its banking service at all times.”
All the four Districts in Quezon were accorded even and proportional representations in its branching strategy. It has carved a province-wide marketing niche to cater to small businesses and consumers who wish to take advantage of a local bank that offers all of services from a commercial bank such as the acceptance of demand deposits which opened in 1994 February and its micro-finance services launched in 2004 when the Coopbank was given the authority as the first Cooperative bank to operate a micro-finance oriented bank. Significant events steered have the bank's successes and development as string of awards from its government partners as well as from other organizations in the banking world both on the national and local levels, has kept coming, one after the other, with the Coopbank of Quezon Province as its worthy recipient.
In 1995, the bank received a plaque of recognition from Gawad Quedancor for the title “Top lending Bank for Coordinated Agricultural Marketing & Production.” From 1997 to 1999, the Coopbank was a consistent awardee to the annual Gawad Pitak Search, firming up its premier position among Coopbanks vying for the same recognition from the Landbank's most coveted Annual Gawad Pitak Search.
Coopbank has garnered third, second places for best Cooperative Rural Bank, until in 2000, when it bagged three (3) prestigious awards from the Land Bank of the Philippines for “Pinakamahusay na Kooperatibang Rural Bank” , 1st Place in the CRB Category in the whole country , “Best in Capital Build-Up” , 1st Place , both awards given in a fitting ceremony of the Gawad Pitak at Heroe's Hall, Malacañan, overtaking in performance cooperative rural banks in existence long before Cooperative Bank of Quezon Province saw its first light of day. In addition, Coopbank of Quezon is the recipient of the title of “Most Outstanding LBP-Assisted Cooperative Bank” for its remarkable performance during the years 1997-1999, by rendering worthwhile contributions in the development of the rural economy.
In 2003, the Cooperative Banks Federation of the Philippines (BANGKOOP) during its 19th Annual Convention presented to CBQP its “Performance Award “for “Best in Capital Build-Up”, for building up the 3rd highest paid-up capital among member cooperative banks and “Chairman's Award for Excellence” , as the number 2 Coopbank in the country, based on 8 financial performance categories. The Cooperative Banks chalked up these successes despite myriad economic constraints and fiscal difficulties that have held our nation captive for the past 15 years.
These glowing achievements can be attributed to the Members of the Board of Directors of Coopbank of Quezon Province who had individually and collectively shown competence and dedication in the discharge of their functions. Some of them ( Atty. Ariosto Llamas, Higino Atienza, Jr., Dr. Pepito B. Hao, Bienvenido Ravida) had already gone to the Great Beyond, leaving as legacy their best service to the Cooperative Bank and those still around, with the imprint of their unsullied records as Members of the Board serving as guiding light for those who will come after them and of the bank's employees who depend on their experience and wisdom to help steer the Bank clear from the many pitfalls that banks are apt to fall into, in the precarious course of their operations.
The Management and the Staff along with the rest of the Banks personnel down the line deserve also to be highly commended for their excellent performance for without their equally selfless, competent and dedicated service to the Cooperative Bank, it would not have reached the enviable status it now enjoys before the eyes of the Cooperative Banking World.
The COOPBANK also realizes that other than capital infusions from member coops and individual preferred shareholders and deposits generated to back up business operations, growth will be propelled, if it will prove at par with, if not surpass, the undertakings of its counterparts. Hence, recognition is being accorded also to the roles portrayed by our partner agencies:
The bank's relationship with the LAND BANK OF THE PHILIPPINES commenced on the same day of the bank's inception in 1991. To augment the bank's resources during its ‘formative” years, LBP, under its Cooperative Formation Program invested P 1.0 Million to preferred shares “A”. This the bank redeemed in 2000. From then on, Landbank has been our partner in a great number of undertakings such as financial assistance through its rediscounting window, technical assistance through subsidized training provided for the management staff, depository/clearing bank for demand deposit facilities and thru endorsement to PVAO to allow their accredited rural banks in servicing pensioners residing in the countryside these myriad services improved tremendously the bank's reach to clientele.
COOPERATIVE DEVELOPMENT AUTHORITY , the government agency created under R.A. 6939 in 1990, registered our bank as the first cooperative bank in 1991. This agency provides the cooperatives directional policy, and a passage of technical and financial assistance thru its regulations, promotion and development programs . In 1992, thru the CDA, Senator Agapito Aquino has donated capital in the form of grant for PhP 500,000 . In 1995, CDA granted a building loan to the Coopbank of P 1.6 Million under its Cooperative Development Loan Fund (CDLF) at 8% p.a. payable in 10 years.
In 2000, its loan balance of P 960,000 to CDA was converted as direct investment to a non-voting Preferred Shares of the Coopbank which entitles it to non-cumulative dividend at a fixed interest rate of 6% p.a. with retirement period of 10 years. As of 2005, a sinking fund equivalent to PhP 491,753.00 has already been provided for its retirement in 2010 or earlier.
TO STRENGTHEN AND SUPPORT FARMERS/FISHERFOLK/RURAL HOUSE HOLD ORGANIZATIONS' MICRO-ENTERPRISE FINANCE INITIATIVES THROUGH VILLAGE LENDING UNIT AND EVENTUALLY ACCESS CREDIT ASSISTANCE TO LOCAL AND FOREIGN FINANCIAL INSTITUTIONS, the Coopbank entered into an agreement with the Agricultural Credit Policy Council (ACPC) in 2004 through its “Project ACCESS” ( Accelerating Capacities on Credit Extension Services to Agri-Agra Households).
This program is a livelihood cum capability building program in agrarian reform areas through the establishment of village lending units (VLU's). The program which is being mutually and jointly implemented by the CBQP and the identified VLU's has adopted the modified group lending after the GRAMEEN program. It has already identified three (3) cooperatives/organization as VLU's and still on-going with more than 1,000 end-beneficiaries to date.
The program pioneered in 2004 with Sentrong Ugnayan ng Mamamayang Pilipino, Inc. (SUMAPI), a people's organization with total members of 3,000 nationwide with head office in Sta. Cruz, Laguna, has received PhP 300,000.00 grant, 3D Domoit in Lucena City, a newly organized coop organized by CBQP with PhP 160,000.00 and Project Tangkilik in Real , Quezon with PhP 220,000, a total of PhP 680,000 grant fund assistance from the ACPC. The bank had its own share of grant of PhP 220,000 for training and monitoring of the program. For the counterpart of the 3 VLU's and the Bank, each has provided a minimum counterpart funds of PhP 50,000 or 20% for the VLU and 40% for the bank. ACPC has been a partner of the bank since 1992 with an initial financial assistance under its Cooperative Enhancement Program of PhP 1 Million, participated in 1993 in the implementation of the 5-year Grains Production Enhancement Program (GPEP) granting the bank a P 30 Million credit line afforded to Class “A” cooperative banks.
QUEDANCOR has been the partner of the Bank since 1994 in the implementation of its various financial packages such as FLAME, LAMP, FARE (Food and Agri Retail Enterprise) and CAMP programs with the scheme of 50%-50% fund sharing and integrated guaranty cover of 85% of the total loans, where some of the accounts remain outstanding as of today. When Quedancor went into retail lending, the Bank was tapped as depository bank where their individual borrowers may open checking accounts as a requirement to avail loan under the terms and conditions of the bank's demand account operations. In August, 2006, Quedancor and the Coopbank agreed to a P 5 Million initial joint venture project under multi-investment program thru rediscounting. Quedancor accorded CBQP as top lending bank in 1994.
Accreditation with the National Livelihood Support Fund started in 1996. In 2004, the bank renewed its accreditation with an approved line of PhP 3 Million under its Omnibus Line and P 300,000 for Soft Loan. NLSF as the fund provider lent on the fund to CBQP at 9% interest per annum under the Omnibus Line and 3% p.a. for Soft Loan. Out of the total credit line under the Omnibus line of PhP 3 Million, only 50% was actually released to the bank in 2005 and PhP 287,410 used for purchase of 2 units of motorcycles and 3 sets of computers to effect greater mobility, more efficient data banking and better communication in program implementation.
Legislators Leonila V. Chavez and Benjamin Cruz (deceased) ,representatives of PARTY LIST ‘BUTIL” had transferred to the Bank the combined amount of PhP 1 Million from 2002 to 2003 through the Department of Social Welfare and Development of Region IV. The said appropriation from their Priority Development Assistance Fund (PDAF) was used to augment the implementation of the Comprehensive and Integrated Delivery of Social Services (CIDSSS) program in promoting the convergence of services in the target areas to hasten development efforts in alleviating poverty. The Coopbank as an intermediary bank has carried out the Micro-finance program under the group lending to the identified beneficiaries in the areas of Concepcion and Morong in Sariaya and Talao Talao, Dalahican in Lucena City as a way of helping them in its alleviation program.
Bank clients, individuals and coop members were afforded a more convenient premium remittance , fastest money-pay out or money-transfer from client to recipient and timely monthly credit of pension.
“Customers developed interest and confidence in the Bank
as the employees exercise the highest degree of care in the protection and confidentiality of security information,..”
On March 8, 2002, the bank entered into a Sub-Agent Agreement with PETNET to offer for sale to the general public WESTERN UNION's Send/Pay-Out Money Transfer Service. Through this sub-agency agreement, the bank was able to provide additional service to its 2,945 clients with a total amount of PhP________of pay-out transfers, particularly in Catanauan Branch covering the Bondoc Peninsula area which has the biggest number of serviced recipients from senders all over the world.
The program has developed customer interest and confidence in the Bank as the bank employees exercise the highest degree of care in the protection of the confidentiality of security information, account numbers and security measures and procedures required as a sub-agent by Petnet/Western Union.
On May 19, 2003, as an accredited bank of Landbank and member of the Rural Bankers Association of the Philippines, Landbank tapped the services of the Bank to become its conduit in PVAO pension program known as the “PVAO PENSION PAYMENT THRU RURAL BANK PROGRAM” . Through this program, the pension benefit due the PVAO pensioners have been effectively serviced. Likewise, the bank has also established client bank relationship as savings accounts were opened by the pensioners where they can withdraw the monthly pension.
On May 23, 2003, Social Security System (SSS) appointed and authorized the Coopbank to act as collecting and paying agent of SSS. The bank and all its branches in different locations have accepted the contributions for Social Security, and Employees Compensation of SSS covered members. It has made remittances to SSS more convenient to the paying members/individuals. As an accredited bank, SSS also introduced to the bank its scheme “MAG-IMPOK SA BANGKO PROGRAM” which consists of direct credit to the Bank of the SSS pensioners monthly pension where the pensioner is required to open a single savings account at a minimum deposit of P 100.00. This scheme has avoided loss and misdelivery being encountered in the present payment-by-check scheme.
Behind this glowing backdrop, more challenges lie ahead for all concerned to face four equally. Each one must prepare for them, double their efforts, continue to innovate as the need for it arises, avoid the many pitfalls of the past, and keep learning from their lessons.
This is the only way to keep everyone moving forward. Either they keep abreast with the challenge of the changing times or be left behind by those willing to make it to the top via excellent performance. This is the choice everyone has to make. It is in this overwhelming belief that adherence to the sound banking principles is crucial to the viability of banking business and in keeping intact the trust of all stakeholders in the banking industry.
In line with the adoption of the Philippine Financial Reporting Standards (PFRS) and Philippine Accounting Standards (PAS) which took effect in January 2005, the Bangko Sentral ng Pilipinas is requiring all banks, including Coopbanks to submit all BSP reportorial requirements under its prescribed reporting system. These new reporting system seeks to enhance the disclosure and transparency of accounts of banks in step with International Accounting Standards.
On top of the frequency of reporting to the Bangko Sentral ng Pilipinas, our bank is under its supervision and subject to the conduct of periodic or special examinations of books, cash and available assets and general condition of the bank For this service, the bank is charged an annual supervision fee of 1/40 of 1% of average quarterly net assets during the preceding year which is being debited from the demand account that the Coopbank maintains with the BSP.
From 1999 to the latest examination in 2005, result of CAMELS ( Capital adequacy, Asset quality, Management, Earnings, Liquidity and Sensitivity to market risk) had given the bank a composite rating of “4” which indicates that the bank has generally sound financial condition, capable of withstanding business fluctuations and can function under normal BSP supervision. The BSP examination also seeks to ensure that banks are adequately capitalized relative to their inherent market risk to ensure the stakeholders interest in the bank.
In the earlier years,1997 until 2000, CBQP obtained a rating of Class ”A” or 93% based on the BSP's amended Credit Rating Guidelines for Rural Banks. The criteria for the credit rating are as follows: management, loan investment, financial condition and rediscounting. The increase in the amount of coverage of deposit insurance from P 100,000 to P 250,000.00 per depositor further boost the confidence of the depositors to put their hard earned money in the bank. PHILIPPINE DEPOSIT INSURANCE CORPORATION , the corporation which promotes and safeguards the interests of the depositing public by way of providing permanent and continuing insurance coverage on all insured deposits charges the bank with a semi-annual assessment fee of ½ of 1/5 of 1% of average assessment base.
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