A Cooperative Bank is organized to provide a wide range of financial services to cooperatives and their members. Which regulator has primary supervisory authority over such banks?

A Cooperative Bank is organized to provide a wide range of financial services to cooperatives and their members. Which regulator has primary supervisory authority over such banks?

• A. Cooperative Development Authority
• B. Bangko Sentral ng Pilipinas
• C. Securities and Exchange Commission
• D. Insurance Commission

Answer: (A)

The main idea is who oversees cooperatives and their financial activities in the Philippines. Cooperative banks, while providing financial services to members, are still organized as cooperatives. That places their regulation under the Cooperative Development Authority (CDA), which is the primary regulator for cooperatives under the Cooperative Code. The CDA handles registration, governance, capitalization, and compliance for cooperatives, including those that offer savings and lending to members. Bangko Sentral ng Pilipinas (BSP) is the regulator for formal banks and other traditional financial institutions, but cooperative banks are governed by the cooperative framework, not the banking framework. The Securities and Exchange Commission (SEC) deals with corporate securities and registrations, not the supervision of cooperative financial activities. The Insurance Commission oversees insurance companies and products. Therefore, the regulator with primary supervisory authority over cooperative banks is the Cooperative Development Authority.

The main idea is who oversees cooperatives and their financial activities in the Philippines. Cooperative banks, while providing financial services to members, are still organized as cooperatives. That places their regulation under the Cooperative Development Authority (CDA), which is the primary regulator for cooperatives under the Cooperative Code. The CDA handles registration, governance, capitalization, and compliance for cooperatives, including those that offer savings and lending to members.

Bangko Sentral ng Pilipinas (BSP) is the regulator for formal banks and other traditional financial institutions, but cooperative banks are governed by the cooperative framework, not the banking framework. The Securities and Exchange Commission (SEC) deals with corporate securities and registrations, not the supervision of cooperative financial activities. The Insurance Commission oversees insurance companies and products. Therefore, the regulator with primary supervisory authority over cooperative banks is the Cooperative Development Authority.