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April 21, 2024

NSSLAs broaden reach to provide financial access to more Pinoys

The Non-Stock Savings and Loan Associations (NSSLAs) operating in the country continues to broaden their reach in providing financial access to more Filipinos by engaging the services of individual agents or sales representatives.

Outgoing BSP Governor Benjamin Diokno said the NSSLA industry remains one of the more accessible and dependable sources of funding for Filipinos.

“The industry’s liquidity and capital positions remain sufficient to support their funding requirements and risk-taking activities,” Diokno added.

NSSLAs are engaged exclusively in the business of collecting savings from their members and financing their personal loans. Profits are generated primarily from lending and investing activities, which are given back to members through net income distribution.

The sector remains strong and stable as reflected in the steady growth of the industry’s assets and loans.

According to Diokno, the assets of NSSLAs grew by 9.1 percent to P283.8 billion at end-2021 from the pre-pandemic level of P260.2 billion at end-2019.

The assets were composed mainly of loans, which rose by 8.9 percent to P246.3 billion from P226.1 billion during the same period.

Deposits, which grew by 36.7 percent to reach more than P80 billion and capital contributions, which rose by 2.8 percent to exceed P134 billion during the comparable period fueled the growth.

“These figures underscore the trust and confidence of NSSLAs’ members in the industry, as well as the support of these institutions to cultivating the habit of saving,” Diokno said.

The BSP also noted the sustained profitability of NSSLAs, which posted an average 7.6 percent dividend rate in 2021.

Moreover, the industry’s liquidity and capital positions are sufficient to support their funding requirements and risk-taking activities.

Through their network of 72 branches and 158 satellite offices nationwide, NSSLAs provide affordable and accessible financial products and services to member-individuals who are underbanked or underserved.

In line with its mandate of promoting the stability of the financial system, the BSP shall pursue further regulatory enhancements as well as strategic partnerships with relevant government agencies and key industry players, including the NSSLA industry.