Deposits & Loans

One of the key elements of the integrated network envisioned for NATCCO is the pooling and sharing of resources, particularly financial resources. Cooperatives first emerged during the Industrial Revolution, when early cooperators recognized that combining their limited resources was essential to overcoming poverty.

Today, the NATCCO Network encourages cooperatives to place invest in their federation and to place deposits that are mobilized for the benefit of other cooperatives that require funding.

In principle, the funds of cooperatives should remain within the cooperative financial ecosystem.

The NATCCO Central Fund embodies this principle. Established in 2002, it was designed precisely to ensure that cooperative resources circulate within the Network. Today, NATCCO’s Treasury & Credit Group is entrusted with stewarding the funds of NATCCO member-cooperatives.

Pooled funds are managed by the Treasury & Credit Group with close guidance of the Investment Committee, composed of top depositors, whose main task is to monitor the investments and recommend investment options in order to maximize fund efficiency.

Anchored on the policy on risk free investments, Liquidity Funds are invested in fixed income instruments such as time deposits and government securities. For the Loan Fund, 80% is allocated for re-lending to other member cooperatives, while the remaining 20% is also placed in government securities, time deposits, corporate bonds, and unit investment trusts funds (UITFs).

Co-ops needing funds, can in turn, avail of our credit facilities such as Revolving Credit Line, Term Loans, Transport Cooperative Loans, and Real Estate Loan.