The Cooperative Movement
A Real Alternative in the World of Financing
By José González Torres, COSSEC Executive President

In the economic and social framework of Puerto Rico, the cooperative movement has achieved not only stability, but has surpassed expectations of an industry that shows innovation and change in a modern world.

While numbers appear in the red for some, the cooperative sector has shown proof of a secure and solid industry.  It has shown an example of strength, even in the most severe circumstances.

At the Corporation for the Supervision and Insurance of Cooperatives (COSSEC), we are aware of this, and, for this reason we have accelerated our plans, taking into account the objectives and the opportunities this versatile market brings to us.

Speaking as someone who is knowledgeable of the industry, I am certain, without fear of being wrong, that the 122 credit and savings cooperatives throughout Puerto Rico represent a real alternative for all sectors because we have evolved and have much to offer as a financial institution in Puerto Rico.

Last year, we announced with great pride, a significant increase in deposit insurance.  Now COSSEC insures deposits up to $250,000 per depositor.  This step guarantees that our members’ assets are well insured.  In the event that a cooperative insolvency occurs, COSSEC offers insurance for each member and depositor which covers up to the amount of $250,000 for shares and deposits maintained in the Savings and Credit Cooperative which is duly licensed and authorized to operate under the laws of the Puerto Rican government.

Our numbers speak for themselves and confirm our commitment.  This announcement was supported by the public, achieving an increase of 7% in deposits, 5% total share growth, 3.95% of stocks and a significant membership rise of 16,000 in only 9 months.  Without a doubt, we have to be a model for institutions when our successes are evident even in these times of crises.
The Credit and Savings Cooperatives have maintained favorable financial indicators contrary to other financial institutions.  Renowned economists have identified the cooperative model as the only sector of the economy that has not collapsed.  This is definitely indicative of the strength of our model.

I maintain that we are leaders in the industry because the cooperatives operate with transparency, agility, integrity, honesty, excellent service and social responsibility.  These values remain intact because they inspire the movement and are not negotiable.

In an industry that has existed for more than 60 years, the social and economic commitment directed to the improvement of the quality of life of our people remains intact.  This is our reason for being, and each cooperative steadily strives for it.

The cooperative movement has covered much ground, but there is still much to do.  So that they can achieve their goals, we in the Corporation have to achieve our own.  For this step, COSSEC received the approval of an innovative and ambitious Strategic Plan.  We propose to use the strategic plan as a fundamental work method in making management decisions as our principal objective.

In accordance with this recently approved plan, the new vision will convert COSSEC into the finest public system institutions of Puerto Rico; a huge goal that requires great effort and dedication.  This is the way which we will continue moving the Corporation toward a vis a vis position with private enterprise.

We are on our way.  We will continue reinforcing each step with the objective of watching over the economic solvency of these cooperatives and to be a custodian of the rights and prerogatives of all cooperative members, thus protecting their economic interests and their right to be well informed.

The cooperative business model is not just an option, it is a real alternative.