Who supervises financial cooperatives in the Philippines?

Who supervises financial cooperatives in the Philippines?

• A. Bangko Sentral ng Pilipinas
• B. Cooperative Development Authority
• C. BSP for specific transactions
• D. CDA for specific transactions

Answer: (A)

When a cooperative engages in financial activities, such as taking deposits and lending to members, it operates as a financial institution. The Bangko Sentral ng Pilipinas is the body that supervises financial institutions to maintain stability, protect depositors, and ensure sound risk management. Therefore, financial cooperatives fall under BSP supervision for their banking-like operations. The Cooperative Development Authority handles the registration and governance of cooperatives in general, especially non-financial ones, but it is not the primary regulator of financial activities. BSP’s oversight applies to the financial functions of these cooperatives, not just to specific transactions.

When a cooperative engages in financial activities, such as taking deposits and lending to members, it operates as a financial institution. The Bangko Sentral ng Pilipinas is the body that supervises financial institutions to maintain stability, protect depositors, and ensure sound risk management. Therefore, financial cooperatives fall under BSP supervision for their banking-like operations. The Cooperative Development Authority handles the registration and governance of cooperatives in general, especially non-financial ones, but it is not the primary regulator of financial activities. BSP’s oversight applies to the financial functions of these cooperatives, not just to specific transactions.