CONSLA’S PLATFORM OF GOVERNMENT AND

LEGISLATIVE AGENDA

CONSLA’S PLATFORM OF GOVERNMENT AND

LEGISLATIVE AGENDA

I. INTRODUCTION I. INTRODUCTION

The CONSLA is the umbrella organization of various Non-Stock Savings and Loan Associations (NSSLAs) in the Philippines. It was created as a governing body with the aim of protecting the interests and welfare of its 94 member-associations as well as its more than 7 million beneficiaries.

The Beginning  1940 The savings and loan industry, then known as “Building and Loan Associations” had its modest beginning. Most of

the NSSLAs evolved from mere “Paluwagans” which were organized by “well-defined groups” that shared common interests 

1963 Congress passed RA 3779 otherwise known as an “Act to Provide for the Regulation of the Organization and Operations of Savings and Loan Associations governed the activities of non-stock and stock savings and loan associations on June 22, 1963

1972 The Confederation of Non-stock Savings and Loan Associations (CONSLA) was born with a handful of members actively participating

1974 CONSLA started to function but was formally organized and incorporated in 1976

1977 Enacted into law by RA 8367 as the umbrella organization of the various non-stock savings and loan associations in the Philippines, it was then that the government institutionalized the important role of the NSSLAs in the country’s economic growth

MISSION STATEMENTS MISSION STATEMENTS

1. To assist and cooperate with the government and its agencies in the task ofpromoting the social and economic growth of the country,particularly in fields assigned by law to non-stock savings and loan associations;

2. To initiate and evolve programs designed to promote frugality and develop the accumulation of savings among members and encourage cooperative assistance to one another toward effective implementation of such programs;

3. To study and devise projects and ways and means of making the credit and savings facilities of non-stock savings and loan associations more responsive to the needs of their members and the industry, commerce and agriculture, homebuilders, household consumers and small-scale entrepreneurs;

4. To foster goodwill and understanding among members, act as medium in the dissemination of information relative to the promotion and development of savings and the proper use of credit facilities by non-stock savings and loan associations; and in general, promote the concepts, objectives and purposes of the entire savings and loan industry

5. TO CHAMPION THE SOCIO-ECONOMIC INTERESTS OF THE MARGINALIZED SECTORS OF PHILIPPINE SOCIETY, which have been, by and large, underrepresented particularly in the country’s body politick hence explaining the reason why their political interests and concerns could not be effectively advanced and/or promoted

To further diversify the associations’ array of financial services, the Confederation will launch new programs and projects that will help lessen the financial burden of their associations’ members. Some of these programs and projects are the following:

 1. Conduct actuarial studies on the possibility of adopting mutual-aid programs for all members;

 2. Increase participation of members on the management of their associations;

 3. Conduct information drives on the rights and privileges of members;

 4. Adopt financial assistance schemes to the underprivileged;

 5. Study the feasibility of adopting health care programs for the general members;

 6. Encourage continuous dialogues with other government agencies affecting the Confederation, and;

 7. In fulfillment of its corporate social responsibility, CONSLA will endeavor to participate

actively in socio-civic activities for its general members and to the citizenry as well.

VISIONS FOR THE FUTUREVISIONS FOR THE FUTURE

As CONSLA faces new challenges especially now that theglobal economic system is under serious threat and test. There is therefore now more reason for the members torely and depend on the stability of the associations which the Confederation heretofore represents. CONSLA will further strengthen its member-associations’capabilities in the field of financial management and shall cooperate and collaborate with the Bangko Sentral ng Pilipinas to expand its financial services and reach – based on more effective and efficient asset-based portfolio management. Through this, the CONSLA expects to further boost-up the associations’ total lending resources which need to dramatically expand so that more members can be better served. At the same time, the Confederation will undertake intensified membership campaigns to accelerate the expansion of its membership base throughout the archipelago.

VISIONS FOR THE FUTUREVISIONS FOR THE FUTURE

PHILOSOPHY PHILOSOPHY

CONSLA was created as a governing body with the aim of protecting the interests of its member-associations in the furtherance of its objective with the primary purpose of attaining its organizational mandates as embodied in its by-laws

Pledge of Unity CONSLA advocates that real genuine development must be focused on the needs of the Filipino people; their liberation from poverty, the delivery of genuine reforms towards a more balanced and equitable and sustainable socio-economic growth. To the foregoing ends, CONSLA pledges its total commitment.

Membership The socio-economic profile of their clientele or the “Well-Defined Groups” being served influence the types and formats of financial services being provided by NSSLAs. Although the members have differing demands sometimes depending on specific community situations, the features common to the majority of the members of NSSLAs are the following: (i) they have low incomes; (ii) they are engaged in labor intensive activities; (iii) they have very limited access to financing from the formal banking sector; (iv) they

lackconventional forms of collateral, and; (v) the financing that they usually require is mostly

forshort-term emergency and consumption loans, in relatively small amounts.  In the case of NSSLAs, members’ money are saved and accumulated, which are

subsequentlylent out to the members themselves at relatively affordable interest rates. Generally, more than 80 percent of NSSLAs’ total funding for financial services to members is generated

from members' savings and capital contributions.

II. THE INDUSTRY PROFILEII. THE INDUSTRY PROFILE

II. THE INDUSTRY PROFILE II. THE INDUSTRY PROFILE

Nature of these Associations  

NSSLAs are technically non-profit Non-Government Organizations (NGOs). Their primary objective is simple and forthright: To reduce and/or alleviate the extent of poverty by so extending cheap and affordable credit to its members, who have been crowded-out from the formal banking system. In short, this is not merely an objective but a socio-economic mandate, which truly differentiates NSSLAs from the mission/vision of traditional banks.

The financial dynamics and risks characteristics of NSSLAs, starkly differ from traditional banking institutions in several ways:

• NSSLAs' loans to their members can be said to be more volatile compared to that of traditional banks.

• NSSLAs have limited capacity to increase their capitalization levels compared to regular banks.

• NSSLAs are not capable of accessing financial assistance from government especially during tight financial situations.

• NSSLAs face a continuum of operational risks, which are rooted in several features unique to member-based credit

Members of NSSLAs have always been perceived as high risk borrowers due to their relatively

simple credit needs, i.e., consumption and emergency loans. Traditional banking institutions

are extremely averse to catering to these types of loans due to the high cost of administering

the same. Therefore these borrowers are, more often than not, deliberately “crowded out”

from the traditional banking system. They could not also access production loans since they

are unable to provide securities or collaterals for this type of loans. 

1. CONSLA has a Well-Defined Constituency2. In case of conflict, CONSLA will chose to attend to the interests of this

marginalized and underrepresented sector 3. Basic CONSLA Expanded Constituency

III. CONSLA REPRESENTING A MARGINALIZED AND UNREPRESENTED SECTOR OF THE PHILIPPINE SOCIETY

III. CONSLA REPRESENTING A MARGINALIZED AND UNREPRESENTED SECTOR OF THE PHILIPPINE SOCIETY

IV. LEGISLATIVE PRIORITIES IV. LEGISLATIVE PRIORITIES

Priority 1:To help sponsor a proposed House Bill entitled: Proposed House Bill entitled: “An Act Further Strengthening Non-Stock Savings and Loan Associations,

Amending for the Purpose republic Act No. 8367, Otherwise Known as the “Revised non-Stock Savings and Loan Association Act of 1997.”

Priority 2:To sponsor a Bill requiring the state to set aside funds and resources to fully upgrade hospital and health care facilities presently run by thegovernment, and; to extend free hospitalization and health care including the provision of free medicine to indigent and poor patients. For this purpose, these funds and resources should also be used to likewise fully upgrade or to establish additional district hospitals all

Priority 3:To propose and sponsor a Bill enticing Financial Institutions (FIs) to set aside adequate fundsfor the purpose of extending cheap and affordable credit to small and medium scaleenterprises, and; providing tax and other fiscal incentives to these FIs who participate in thisprogram.

IV. LEGISLATIVE PRIORITIES IV. LEGISLATIVE PRIORITIES

Priority 4:  To sponsor a Bill creating and/or supporting institutions specializing in the training and

improvement of skills and talents of marginalized members of Philippine society. The support that could be extended particularly by government could come in the form of direct financial transfers, i.e., provision of certain tax and fiscal incentives to encourage especially the private sector to participate in this program.

Priority 5:  To sponsor a Bill that will provide more resources to the agricultural sector by direct

transfers and subsidies to agricultural activities, i.e., food production, and; so providing likewise tax and fiscal incentives to financial institutions who will participate in increasing the productive capacity of this sector.

Priority 6:  To sponsor a Bill that will empower the productive capacity of women particularly in the

rural areas, and; entice financial institutions, which shall be extended tax and fiscal incentives, to commit financial resources which can be used by these beneficiaries to create or start-up small and medium scale business opportunities based in these rural communities.

Priority 7:To sponsor a Bill that will attract and/or entice more developers to construct more low-cost housing units, and; to provide and/or extend tax and fiscal incentives not only to developers but likewise to financial institutions that will commit adequate financial resources for this purpose.

IV. LEGISLATIVE PRIORITIES IV. LEGISLATIVE PRIORITIES

Priority 8:  To sponsor a Bill to entice and/or encourage Non-Government Organizations (NGOs) to

design and thereafter implement pro-poor programs and projects which are needed and/or required to uplift the general welfare and well-being of marginalized members of Philippine society, and; likewise so providing fiscal incentives and even direct transfer to these organizations so that they can effectively and efficiently discharge their mandate.

Priority 9:  To sponsor a Bill that will create and/or establish more Science High Schools to be

situated and/or located in strategic areas in the country, and; allocating and setting aside funds for this purpose.

Priority 10:  To sponsor a Bill that would incentivize rural communities to preserve their existing eco-

systems, and; providing funds and resources to defray and/or sustain environmental programs especially in the rural areas.