1. Philippine National FOs’ Experience (NATCCO, and SIDC)

2.  The flagship service for its member-cooperatives is financial intermediation which is currently called NATCCO Central, the central bank of its member- coops.  It focuses on savings and credit operations for their coop members. The individual members bank at the primary cooperatives and these primary cooperatives bank at NATCCO. It started with P16 million in asset in 2001 and this has grown to more than P2 billion now.

3. Treasury and Credit for Member- Cooperatives  established on September 2002  Provide deposit-taking place deposit in sound investments outlets like government securities, loans to cooperatives and business enterprises.  Credit-granting services to affiliates and members of the network

4. Product & Services Deposit  Liquidity fund (short term)  Loan Fund (long term) Loans Loan Products  Credit Line – renewable yearly  Term Loan - short term (1 year ) long term (3 years)  Back to Back – against deposit

5. MICOOP Micro-Finance Innovations in Cooperative NATCCO extends the reach of its co-op microfinance services to the enterprising poor who desire to engage in microenterprises but have no access to formal lending institutions and/or are dependent on informal lenders who charge usurious loan rates

6. NATCCO partners with member-coops in setting up microfinance operations branch using BOAT approach (Build, Operate, Adopt, and Transfer). It plans with member-cooperative where to set up a branch. NATCCO spends for everything - office refurbishing, necessary signage, manpower, etc. NATCCO operates the branch within 3 to 6 years, train on- the job the staff, and provide the needed financing. As soon as the branch registers income, NATCCO lets the member-cooperative buy the branch. The branch operates independently with its own management committee.

7.  120 MICOOPs have been established by NATCCO nationwide, 50 were already bought out by their member-coops  MICOOP is considered as a loan by the member cooperative. NATCCO spends about P10 to P20 million per 1 MICOOP. The start-up budget is P1M, P500,000 to P800,000 are spent to refurbish building. A branch should have a loan portfolio of about 10 million. It should be set up in areas that have no bank.

8.  “Solidarity fund” - co-ops contributing to it help one another.  Fund shall be the primary source of financing to cooperatives in financial distress.  Technical supervision provided  Member co-ops entitled to quarterly analysis of ratios and yearly visits. Stabilization Fund System

9. o Deposits Accepting deposits from members  Loans Cash Loan (STL, MTL, LTL) Hog Fattening Program (commodity loan) Hog Breeding Program Agricultural Production Loan Housing Loan Car Loan Program Environmental Loan Mortuary Loan Investment Accepting investment from OFW and other members

10.  Funds will not always be enough. There is still need for funds for counter-parting and subsidized provision of training, technical services and other social services such as cooperative ad enterprise diagnosis, training programs, technical assistance, etc.  Difficulty of some members to pay back on time Savings, collaterals, and insurances are mandated as per policy of the FOs.  The appropriate balance for social and economic fund allocation While profitability is important, social services for members should not be forgotten. All the needs of members must be considered because they are the main reason for cooperative’s establishment.

11.  The important role of FOs in stimulating business enterprises. FOs should try to invest in business enterprises that can generate income as well as employment  Financial services should be provided not only for business enterprises but also for social programs such as education, health, etc. If this will not be done, capital for enterprises maybe channelled to basic family needs.

12.  Loans are not only in the form of cash money. It can also be commodity  Savings and loans should always be partners  Farmers must be helped also to pay their loans

13. Capital ShareInvestmentsIncome SavingsLoans Collaterals Patronage RefundPaymentsMortgages Profit ShareInterestFines