Lower house passes two bills to further improve banking system – Manila Bulletin

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Two bills proposing to further strengthen the country’s banking system have passed the final reading in the House of Representatives.

President Lord Allan Velasco3

Speaker Lord Allan Velasco commended his colleagues in the Lower House for passing the bills regulating co-operative banks and reorganizing the Land Bank of the Philippines (Landbank) on third and final reading.

House Bill 9541 which provides for the registration, regulation and operation of cooperative banks was approved following a 156-0-0 vote.

In contrast, HB 10581 or the New Landbank Act received 160 affirmative votes when the plenary session resumed on Monday, January 24. No member recorded a negative vote or abstention.

“We hope that through these two pieces of legislation, we will be able to provide stronger and more sustainable credit and financial services to co-operatives and their members,” Velasco said.

He expressed his confidence that the two bills, once enacted, will play a key role in national development, especially in the countryside.

“Now, more than ever, we need to strengthen the cooperative sector as a measure to tackle extreme conditions of poverty and improve the livelihoods of rural communities,” he added.

HB 9541 contains provisions of bills drafted by Representatives Sabiniano Canama (COOP NATTCO Partylist); Joy Myra Tambunting (2nd District, Paranaque City) and Pablo John Garcia (3rd District, Cebu).

The bill recognizes BCs as practical vehicles for promoting self-reliance and economic development, and achieving social justice.

HB 9541 also aims to regulate and supervise the activities of CBs in order to achieve sound, stable, sustainable and efficient operations for the protection of the public interest.

Meanwhile, HB 10581 was introduced by Quirino Rep. Junie E. Cua, Chairman of the House Committee on Banks and Financial Intermediaries.

HB 10581 provides a new charter for Landbank, a government financial institution with a mandate to promote rural development, helping to boost credit activity and financial inclusion.

Under the bill, Landbank will continue to provide accessible and innovative solutions to provide fast and responsive financial and support services to rural financial institutions, as well as small-scale farmers, fishers and land reform beneficiaries (ARBs).

In accordance with its mandate, Landbank must allocate 5% of its regular loan portfolio for Socialized Credit to qualified smallholder farmers, fishers and ARBs, in accordance with Republic Act 10000 or the Agri-Credit Reform Act of 2009. Agra.

Loans granted under this special socialized credit facility will have an interest rate not exceeding 75% of the Landbank’s prevailing rates for loans to cooperatives.


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