NSSLAs remain resilient amid the pandemic

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    Non-stock savings and loan associations (NSSLA) remain stable amid the pandemic and continue to provide financial services to its members, according to the Bangko Sentral ng Pilipinas (BSP).

    “NSSLAs support economic development through savingsmobilization and the promotion of inclusive finance. By making financial products and services affordable and accessible to its 1.4 million members, the industry serves the needs of the underbanked as well as those underserved by other financial institutions,” said BSP Governor Benjamin E. Diokno.

    At present, 63 NSSLAs cater to the needs of well-defined individuals, including military and uniformed personnel (MUP), public and private school teachers, government and private sectors employees, and market vendors.

    With 291 branches nationwide, the industry has initiated the use of technology to reach members and provide convenience in terms of registration, loan application, balance inquiry and fund transfer.

    The industry’s assets grew by 14.9 percent to P260.2 billion at end-2019 from P226.4 billion at end-2018. Said assets are composed mainly of

    loans which surged by 16.1 percent to P205.5 billion from P177.1 billion during the same comparative period.

    At end-2019, 86.8 percent of said assets came from MUP NSSLAs, which continue to have the biggest contribution to the industry’s resources.

    Moreover, the NSSLA industry’s key capital, asset quality, profitability, and liquidity ratios remain above regulatory thresholds.

    Meanwhile, NSSLAs’ resources are projected to grow by about 5 percent at end-2020.

    Loans and net income are also projected to rise although at a slower pace due to a slowdown in lending activities.