Network Consolidated Cooperative Bank opens
Network Consolidated Cooperative Bank Board of directors, led by Representative Anthony M. Bravo (second from right), take their oaths at the Gloria Maris Restaurant in Cubao Sept. 8, 2014.
MANILA, Philippines — The cooperative sector welcomed the grand opening of the Network Consolidated Cooperative Bank (NCCB) at its main office on Katipunan Avenue.
The September 8 event was attended by officials of the Cooperative Development Authority (CDA), Philippine Deposit Insurance Corporation (PDIC), National Confederation of Cooperatives (NATCCO), primary cooperatives, co-op insurance, and cooperative banks.
The six cooperative banks that consolidated to form NCCB were the Cooperative Bank of Agusan del Sur, Cooperative Bank of Camarines Norte, Cooperative Bank of Leyte, Capiz Settlers Cooperative Rural Bank, Sorsogon Provincial Cooperative Bank, and the Southern Leyte Cooperative Bank.
These cooperative banks’ offices will become the branches of the new consolidated bank.
As early as Dec. 15, 2011, the six co-op banks met with NATCCO officials for the initial planning. A Technical Working Group was formed, which met on December 27. The following day, the NATCCO submitted a Letter of Intent to the BSP to be the Strategic Third Party Investor (STPI).
The TWG fast-tracked the move, meeting with officials of the BSP, Philippine Deposit Insurance Corporation (PDIC) and the Land Bank of the Philippines (LBP) just after New Years’ Day on Jan. 9, 2013. By February, consultants were sought, and by March 2013 a Strategic Business Plan had been formed as the BSP concluded a Due Diligence Audit.
In July the NATCCO and the constituent banks filed the Application for Consolidation, which the Monetary Board approved in October.
In January 2014, the CDA approved the NCCB’s registration and the BSP issued the Authority to Operate in March.
The consolidation of six cooperative banks was approved under the BSP’s Strengthening Program for Cooperative Banks (SPCB) which encourages mergers and acquisitions in the industry to strengthen the cooperative banking sector by extending incentives to merging banks, which include investments, loan, credit facility, and rediscounting ceiling.
NATCCO Chief executive Officer, Sylvia O. Paraguya, welcomed the stakeholders at a luncheon and said the birth of the NCCB has come “after a very long pregnancy of meetings.”
PDIC Executive Vice President Imelda Singson congratulated all the stakeholders of the NCCB, saying: “You have done a great job!”
The CDA’s Officer-in-Charge Dr. Eulogio Castillo said: “This is a success story in the consolidation of co-ops. I congratulate the brave banks for this victory. But you will have to be vigilant because of the competition both from local and foreign banks.”
He further assured that the CDA will “always be there to serve you so you can be the bank of choice.”
NATCCO Chairman, Jose B. Ebron, called on the co-op leaders in attendance to “be part of the NCCB.”
According to General Manager, Deal Benegrado, “The Strategic Third Party Investor is the National Confederation Cooperative which will provide a very good linkage and the source of market for this new cooperative bank. NATCCO has different departments like its educational arm, information technology, as well as a Central Fund that will provide good service facilities for NCCB, particularly is IT capabilities in financial software and ATMs.”
Benegrado is an engineer by profession and was manager of the highly successful Mindanao State University – Iligan Institute of Technology Multi-Purpose Cooperative based in Iligan City.
At the conclusion of the opening ceremonies, Benegrado urged the co-op leaders in attendance: “Try NCCB because it is owned by the cooperatives!”
The leaders afterward pledged their co-ops’ initial deposits.
