In its formation, Non-stock Savings and Loans Associations (NSSLAs
) must have 'at least five but not more than 15 members of a well-defined group as provided herein may form an Association under this Act.' MBAs have no minimum membership, but to be classified as a micro-MBA it must have 5,000 members.
Likewise, the guidelines state the investments must be safe, readily marketable, high grade, and locally-issued."The guidelines clearly define the allowable investments and limit of such investments that NSSLA can enter into," the BSP said in a statement.
element-invisibleBusiness ( Article MRec ), pagematch: 1, sectionmatch: 1Furthermore, the new guidelines also raised the bar on the establishment of the true identity and eligibility of persons to become members of NSSLA.The regulator explained the know-your-member (KYM) guidelines set clear BSP's expectations on the responsibilities of the board of trustees and management of NSSLA to establish and implement effective risk management system and risk control.
The rules and regulations also set out the documentary requirements for membership, to ensure that all members are eligible."It aims to protect the NSSLA members by preventing the use of NSSLA, by unscrupulous persons, as a means to profit or to take advantage of their nature and operations," the BSP said.
The Bangko Sentral ng Pilipinas (BSP) has put a cap on the ability of so-called nonstock savings and loan associations, or NSSLAs, to invest where they like, to no more than 10 percent of assets as part of a reform process preventing abuse down the line.
The BSP is particularly strict on how NSSLAs deploy their excess or unutilized funds that must now be clearly defined and within a particular perimeter.
"I want to serve even more the members of CONSLA and NSSLA," he said.
The NSSLA which has grown to 71 savings and loans associations, caters to the marginalized sectors of Philippine society, such as the military and police, teachers, employees of the government and private sectors, market vendors, miners and school employees among others.
to issue a cease-and-desist order against the NSSLAs, and thus protect more retired servicemen from a cycle of crushing debt.
By July, therefore - when Espenilla officially takes over the office - the no-nonsense bank regulator can finally apply the brakes and review the operations of these NSSLAs.
The least accessible financial service providers are NSSLAs and insurance agents/companies.
The percentage of adults who have performed transactions in NSSLAs and pawnshops is relatively high in Visayas compared with other regions.