ILOCOS SUR — The Cooperative Development Authority (CDA) through its Supervision and Examination Division, conducted a nationwide training orientation on the Risk-Based Supervision and Examination Manual for Cooperatives Engaged in Lending (RBSEM-CEL) last March 23-27, 2026.
The five-day activity, held under the Inspection and Examination Protocols thematic area, forms part of the Authority’s ongoing Ladderized Certification and Capacity Building Program (LCCBP), aimed at strengthening the competencies of its regulatory workforce.
A total of 149 certified Level 1 examiners, along with their respective section heads, participated in the training. The examiners were also formally recognized during the opening program for attaining their Level 1 certification, marking a significant milestone in their professional development.
In his welcome remarks, Atty. Frederick Joe N. Robles, Regional Director of Region I Extension Office underscored the significance of the event, describing that the training is an unprecedented undertaking for cooperative inspectors and examiners, emphasizing its importance in strengthening regulatory capabilities.
Atty. Robles also highlighted the relevance of transitioning to a risk-based examination approach, noting that it serves as a more responsive and effective tool in supervising the cooperatives.
Building on this point, Atty. Ma. Lourdes P. Pacao, Deputy Administrator of the Registration, Supervision and Examination Service outlined the rationale behind the adoption of the Risk-Based Supervision (RBS) framework. She noted that the traditional compliance-based supervision, which focuses largely on historical data and checklist-driven processes, is no longer sufficient to address the increasing complexities of lending operations among cooperatives.
Cooperatives engaged in lending are exposed to a wide range of risks that, if left unmanaged, can undermine financial stability and erode member trust. She also added that the RBS shifts the regulatory perspective from reviewing past performance to anticipating future risks, enabling a more proactive and strategic approach to oversight.
Reinforcing this perspective, Usec. Alexander B. Raquepo delivered an inspirational message expressing strong support for capacity-building and skills enhancement initiatives for CDA field personnel. He reminded participants that cooperatives are the very reason the CDA exists and that the agency’s budget ultimately flows from their welfare, highlighting the Authority’s moral obligation to supervise cooperatives effectively. Usec. Raquepo also emphasized the critical role of risk-based examination in making the CDA’s supervisory function more impactful.
On the other hand, Administrator Dr. Emmanuel M. Santigauel, highlighted the need to adopt a risk-based approach rather than a purely compliance-based examination and stressed remaining firm and principled in inspection observation.
Dr. Santiaguel reminded personnel that their responsibilities go beyond identifying deficiencies; they must guide cooperatives on addressing findings and improving operations before leaving. He further underscored that CDA personnel serve both as developers and public servants, with a duty to uplift, support, and empower cooperatives. He encouraged approaching cooperatives with humility and respect, fostering collaboration and mutual understanding, clarifying that the objective is not to penalize but to help them grow. All actions and interactions, he emphasized, should reflect service, integrity, and a genuine commitment to cooperative development.
Moreover, the RBSEM-CEL was developed through a partnership between the CDA and the German Cooperative and Raiffeisen Confederation (DGRV), with support from a Technical Working Group composed of CDA personnel and experts from the Bangko Sentral ng Pilipinas (BSP) and the Securities and Exchange Commission (SEC). The training was designed to deepen participants’ understanding of the Risk-Based Supervision Framework, enhance their ability to identify and prioritize key risk categories, and strengthen their analytical skills in detecting early warning signs of financial or operational distress.
In addition, the program aimed to to standardize the use of the RBSEM-CEL in conducting both on-site examinations and off-site monitoring/surveillance, as well as to guide examiners in formulating appropriate supervisory and corrective actions based on assessed risks.The CDA said the initiative underscores its commitment to modernizing regulatory practices and ensuring the long-term sustainability of cooperatives engaged in lending across the country. The conduct of examination using the RBSEM-CEL is set to roll out within the year, making a significant step toward a more proactive and risk-based supervisory framework.
With the continued strengthening of its regulatory systems and the upskilling of its examiners, the CDA reaffirms its commitment to promoting a transparent and sustainable cooperative sector that effectively serves the interests of its members and contributes to inclusive development.
