Sept. 27 - Report.pptx

Utility Cooperative A COMPREHENSIVE OVERVIEW Presented by: Librada , Jizame L.  Introduction Definition: Member-owned organizations providing utility services (electricity, water, telecommunications). Purpose: Serve the needs of members rather than...

Utility Cooperative A COMPREHENSIVE OVERVIEW Presented by: Librada , Jizame L.  Introduction Definition: Member-owned organizations providing utility services (electricity, water, telecommunications). Purpose: Serve the needs of members rather than generate profit  History Utility cooperatives emerged during the 1930s New Deal as part of efforts to electrify rural America. At that time, 90% of urban residents had electricity while only 10% of rural homes did. This disparity led communities to form cooperatives to gain access to essential services.  Democratic Control - Each member has voting rights. User-Owner Principle- Users are the owners. Service at Cost- Services are provided at cost, not for profit Key characteristics  Types of utility Cooperative Electric Cooperatives Supply electricity, often in rural areas. Water Cooperatives Provide safe and reliable water services. Telecommunication Cooperatives Offer internet and phone services Benefits Lower costs through bulk purchasing. Community-focused services tailored to local needs. Local decision-making enhances accountability Challenges Financial sustainability in maintaining infrastructure. Engaging members in Governance and Operations. Competetion from investor- owned utilities. Steps to form utility Cooperative 1.Conduct a feasibility study. 2.Gather interested members. 3.Draft by laws and legal documents. 4.Incorporate and secure funding. Worker Cooperative Reporter: MABAO, FLORES MAY What is Worker cooperative? A Business owned and controlled by its worker- members Worker-members share, Profits, Decision-making responsibilities, History and evolution of worker cooperatives: Early Beginnings: First recorded worker cooperative established in 1834 in Rochdale, England Founded by a group of weavers, known as the Rochdale Society of Equitable Growth Pioneers and Expansion: Spread across Europe and North America in the 19th and 20th centuries Emerged in response to social and economic crises Importance and benefits of worker cooperatives: Improved working conditions Increased productivity Better job security  Characteristics of Worker Cooperatives 1. Ownership and control by worker-members - the ownership and control of the business are vested in the worker-members 2. Democratic decision-making processes - 3 types of forms: *General assemblies: *Board of directors: *Committees: 3. Distribution of surplus (profits) among worker- members. 3 forms of profits: *Dividends *Bonuses *Reinvestment 4. Autonomy and independence - Worker cooperatives are autonomous and independent organizations, free from external control or interference. Types of Worker Cooperatives Producer Cooperatives Producer cooperatives are businesses owned and controlled by workers who produce goods or services. Examples: Agricultural cooperatives: Artisanal cooperatives Service Cooperatives Service cooperatives are businesses owned and controlled by workers who provide services. Examples: Hybrid Cooperatives Healthcare cooperatives: Hybrid cooperatives combine Education cooperatives: different types of cooperatives, such as producer and service cooperatives. 2 forms of cooperative * Multi-stakeholder cooperatives: Advantages and Challenges of Worker Cooperatives ADVANTAGES OF Worker Cooperatives *Improved working conditions *Increased productivity *Better job security Challenges of Worker Cooperatives * Management and decision-making complexities: * Financing and resource constraints The Core Functions of the BSP An introduction on the BSP’s role in the economy utlin What we’ll learn e today 01 | The BSP’s mandate Sec. 3, RA 7653 (New Central Bank Act), as amended by RA 11211 02 | The Core functions of the BSP Price Stability, Financial Stability, and Efficient Payments & Settlements System 03 | Other functions of the BSP Issuer of money, Manager of official reserves, Bank of banks, Official depository and advisor of national government, and determination of the foreign exchange policy 01 | The BSP’s mandate Sec. 3, RA 7653 (New Central Bank Act), as amended by RA 11211 “ …primary objective… is toMAINTAIN PRICE STABILITYconducive to a balanced and sustainable growth of the economy and employment.” “…shall PROMOTE FINANCIAL STABILITY...” “…shall OVERSEE THE PAYMENT & SETTLEMENT in order to promote SYSTEMS sound and in the Philippines… prudent practices consistent with the maintenance of financial stability.” “…shall PROMOTE FINANCIAL BROAD SERVICES & CONVENIENT & consider the interestACCESS TO HIGH of the general QUALITY public.” 02 | Core Functions of the BSP 0 0 3 1 through the 0 0 03 by providing channels conduct of PRICE through which funds are FINANCIA EFFICIENT monetary policy 1 STABILIT 2 STABILIT PAYMENTS & transferred among banks L Y SETTLEMENT and other institutions Y S SYSTEM by managing systemic risks and promoting a secure and reliable banking 02 system by ensuring the safe and sound operation of banks and other BSP- supervised financial institutions (BSFIs) 02 | Core Functions of the BSP: Price Stability 0 PRICE 1 STABILIT Y Price Stability is achieved through the conduct of Monetary Policy 02 | Core Functions of the BSP: Price Stability What is Price Stability & Why is it important? PRICE There is low and stable inflation (rate of STABILITY change in ✓ the average prices of goods and services). ✓ The average prices of goods and services do not change substantially over time. Stable prices preserve purchasing and allow consumers to and businesses make sound economic and financial power decisions. 02 | Core Functions of Case: Inflationary pressures due to excessive demand the BSP: Price Stability Required action: BSP to slow down inflation by implementing How does the BSP promote Price Stability? contractionary monetary policy byraising policy rate Monetary Polic actions y by central a bank Instruments Level of Price of Monetary Money of Money Polic and Credit and Credit y Influences overall demand Exerts influence on prices Any change in the BSP’s policy rate takes one to two yearsbefore it is fully felt across the economy. The BSP looks at inflation forecast for the next two years and takes action NOW, if needed, to achieve inflation target. 02 | Core Functions of the BSP: Price Stability EXPANSIONARY CONTRACTIONARY o Central bank lowers policy rate Reduces o Central bank raises policy rate cost of borrowing Increases money Increases cost of borrowing Slows down o supply/liquidity o money supply/liquidity Reduces Increases spending (demand) or spending (demand) or investment investment to o o to slow inflation o stimulate the economy (can increase inflation) o INFLATION TARGETIN PROCES G S 02 | Core Functions of the BSP: Financial Stability 0 FINANCIA 2 LSTABILIT Y Managing systemic risks and promoting a secure and reliable banking system by ensuring the safe and sound operation of banks and other BSP Supervised Financial Institutions (BFSIs) 02 | Core Functions of the BSP: Financial Overview of the Philippine Financial System Stability Savers (have Borrowers Financial excess funds) (need Intermediaries funds) Supervised and Regulated by the SEC, IC, BSP Regulated CDA by Bankin Other NBFIs without Institutio g FIs Quasi- Banking ns Functions Universal Commercial with Quasi- Pawnshop Lending Investment Bank Banks Banking Functions s Bank-affiliated s Companies Houses Non- Non-Stock Financing Capital Thrift Bank Savings and Market Participant Rural Companie Financial Institution Loans Association s s s s Banks Banks Cooperativ Money Pre-Need Insurance Companie Islamic Companie s e Bank Businesse Service s Banks s s Digital Cooperative Banks s Promoting Financial Stability FINANCIA L SYSTE M ✓ Financial Stability (FS) is about managing financial system risks so that these risks do not create negative consequences to the rest of the economy. ✓ FS is about managing risks that can the availability and effective delivery disrupt Systemic risk of financial products and services management iscrucialto avoid the next crisis 02 | Core Functions of the BSP: Financial How does the BSP conduct financial supervision and regulation Stability Issuance of rules Conduct of conduct/ of examination/ standard of regular operations ✓ safety & soundness of investigation FIs smooth functioning ✓ of financial markets protection of interests ✓ of depositors & investors Inquiring into solvency/liquidit Risk y profiling 02 | Core Functions of the BSP: Effi cient Payments & Settlements System 0 EFFICIENT 3 PAYMENTS & SETTLEMENT S SYSTE M Providing channels through which funds are transferred among banks and other institutions  What is an efficient payments and settlements system? o includes institutional and infrastructure arrangements and processes through which money is transferred from one party to another o provides channels through which funds A safe, sound, & efficient payment are transferred obligations to discharge payment a critical system is market infrastructure of a stable financial system arising from economic transactions and financial (includes digital transactions 02 | Core Functions of the BSP: Efficient Payments & Settlements System How does the BSP take the lead in promoting an efficient payments & settlements system? RA No. 11127 or “The National Payment Systems Act” (NPSA) OVERSEER, REGULATOR, & OWNER & OPERATOR OF REAL SUPERVISOR OF PAYMENT TIMEGROSS SETTLEMENT SYSTEMS Provide a policy and regulatory framework, also known SYSTEM Provide the necessary infrastructure through the as the National Retail Payment Systemor NRPS, to operations of the Philippine Payments and establish safe, efficient, and reliable retail payment system SystemSettlements or the in the country. “PhilPaSS.” 03 | Other Functions of the BSP ISSUER OF MONEY MANAGER OF OFFICIAL BANK OF BANKS/LENDER Only the BSP can issue legal RESERVES OF LAST The BSP transacts with banks RESORT tender The BSP manages the country’s GIR only, and gives loans when warranted OFFICIAL DEPOSITORY AND ADVISOR OF DETERMINATION OF NATIONAL GOVERNMENT THE EXCHANGE RATE The NG maintains deposits with the BSP, while the POLICY advises the NG BSPon exchange BSP rate ofthe is in charge borrowings policy Priority Messages | Financial Inclusion Financial inclusion is a state in which everyone, especially the vulnerable sectors, has effective access to a wide range of financial services. Source: 2019 FIS Topline Report National Strategy for Financial Inclusion (NSFI) 2022- 2028 The new NSFI will serve as a six-year blueprint to achieve the vision of driving financial inclusion toward broad-based growth and financial resilience. Priority Messages | Digital Payments Transformation Digital Payments Transformation Roadmap (DPTR) 2020-2023 Target by Cash- Cash- 2023 heavy lite 70% 50% More efficient Accessibility of financial products Minimum number of Share of digital payments payments processing and services to more people, including low-income earners and Filipino adults with against the total volume financial accounts of financial transactions those in the countryside in the country Faster capital As of Q4 turnaround and 2020 income growth Financial inclusion 34.7 20.1 million % Share of digital payments New Order of Active electronic against the total volume Payment money accounts of financial transactions in System the country (NOPS) 93 % 17.9 million in 2019 Priority Messages | Sustainable Central Banking The BSP's Sustainable Central Banking Program one of BSP's 2020-2023 strategic priorities aims to integrate environmentally responsible and sustainable policies and work practices within the BSP encourage the financial industry to invest in activities that will promote climate-resilient, green, and sustainable growth The BSP promotes a policy environment that supports the adoption and Enabl growth of sustainable finance e The BSP will lead and influence financial institutions to carry out environmentally Mobiliz and socially responsible business decisions and adopt green practices. e D The BSP invested in the green bond fund of the Bank for International Settlements (BIS) in line with its sustainable investment strategy It also formed a bank-wide technical working group (TWG) that would conduct vulnerability assessment to determine the impact of climate change to the BSP offices and o branches. Priority Messages | Proper Handling of Banknotes and Coins We can all help in preserving the integrity of our currency Place banknotes inside proper Place coins inside proper coin Exchange unused coins in wallets or purses or banks. containers. containers. Keep banknotes and coins clean. Use banknotes and coins as payment for goods and services. Clean Note and Coin Coin Recirculation Policy Program Priority Messages | Cyber Hygiene in Digital Transactions Check Emails, Texts and Do Background Use Strong Websites Checks Passwords Phishing emails usually contain wrong Verify the identity and legitimacy of Lengthen and use special characters in spelling and grammar individuals or institutions that request your password to make it harder to It also uses personal email addresses for personal and account information, guess. and unofficial URLs. donations, investments or payments. Use different passwords for different Check if the website URL has an "S" to accounts and change it frequently. ensure that it is safe (https:///www.website.com) Priority Messages | Cyber Hygiene in Digital Transactions Report Use Multi-Factor Maintain Information on Communications, Accounts Suspicious Personnel or Authentication Personal Private Transactions to the Authorities Make use of security questions, mobile Do not divulge your account numbers, Immediately ask your bank or financial pin (MPIN), one-time-pin (OTP), or texts log-in credentials, MPIN, OTP, and CVV institution for help. Report suspicious and email notifications for all your code to others emails from fake websites, impostors accounts as an additional layer of or suspicious documents and security when logging-in or confirming transactions to regulatory authorities financial transactions such as the BSP. Legal financial institutions will NOT ask for personal and sensitive information KEY TAKE- AWAYS To preserve purchasing power, the BSP’s main objective is to maintain price stability. It uses inflation Consumers directly targeting as a framework for conducting monetary benefit. policy. Depositors, borrowers, and BENEFITS To help promote financial stability and a financial other system players risksandand secure ensures the safe and sound benefit directly reliable banking system, the BSP manages. systemic operation of banks and other BSFIs. WHO To ensure safe and efficient payments and Transacting parties directly settlements benefit. of financial transactions, the BSP provides the policy and regulatory framework and infrastructureessential to the effective functioning of financial systems. THE ECONOMY AS A WHOLE  Thank you &Stay safe! Website: http://www.bsp.gov.ph Email: Like and follow us [email protected] on @PisoLi t