On Wednesday, a Department of Science and Technology (DOST) official said that the government would…
The non-stock savings and loan association sector continues to expand.
According to the Bangko Sentral ng Pilipinas, non-stock savings and loan associations (NSSLAs) remain robust and stable, as seen by the consistent expansion of the industry’s assets and loans (BSP).
NSSLAs are solely involved in the collection of funds from their members and the financing of personal loans. Profits are created primarily through lending and investment activities, and net income is distributed to members.
“The assets of NSSLAs increased by 9.1% to PHP283.8 billion at the end of 2021, up from PHP260.2 billion at the end of 2019.” Loans accounted for the majority of assets, which increased by 8.9% to PHP246.3 billion from PHP226.1 billion over the same time, according to BSP Governor Benjamin Diokno.
Deposits, which increased by 36.7 percent to more than PHP80 billion, and capital contributions, which increased by 2.8 percent to more than PHP134 billion during the same period, drove asset growth.
“These results demonstrate the NSSLAs’ members’ faith and confidence in the business, as well as the support of these institutions in encouraging people to save,” Diokno said.
The BSP also emphasized the NSSLAs’ long-term viability, citing a 7.6% average dividend rate in 2021.
The liquidity and capital levels of the industry are sufficient to meet their funding needs and risk-taking operations.
NSSLAs provide inexpensive and accessible financial goods and services to members who are underbanked or underserved through their statewide network of 72 branches and 158 satellite offices.
“NSSLAs will continue to play an important role in promoting inclusive finance and empowering the excluded sector,” Diokno said.
The BSP will explore further regulatory changes as well as strategic relationships with relevant government agencies and major industry players, including the NSSLA industry, in order to fulfill its mandate of ensuring financial system stability.