SAVINGS AND LOAN ASSOCIATIONS

Savings and Loan Associations are depository institutions concerned

with collection of the savings of its members and stockholders and utilizing
such accumulation in loans or investments in securities of successful
businesses.
These institutions are regulated under the Republic Act No. 3779 also
known as the Savings and Loan Association Act, as amended by R.A. No.
4378. According to this special law, “Savings and loan association shall
include any corporation engaged in the business of accumulating the savings
of its members or stockholders, and using such accumulations, together with
its capital in the case of a stock corporation, for loans and/or for investment
in the securities of productive enterprises or in securities of the Government,
or any of its political subdivisions, instrumentalities or corporations”. They
can grant loans, charge interest within the limits allowed by law, invest its
funds in any enterprise, bond, or securities, and borrow money or incur such
obligations up to not more than five per centum of the total assets of the
association, from any public lending institutions such as the Philippine
National Bank. They are prohibited from advertising or representing itself to
the public as a bank, whether commercial or savings, or as a trust company.
These institutions can either be organized as stock or non-stock
corporations. A savings and loan association (SLA) organized as a stock
corporation should have a capital of at least one hundred thousand pesos
and is authorized to receive deposits and extend loans from and to the
general public. A non-stock SLA on the other hand has membership limited
only to specific and well-defined group of persons and cannot transact
business with the general public. It can only accept deposits from and grant
loans to its members.
Here are five (5) active savings and loan association in the Philippines:
I. Public Safety Savings and Loan Association, Inc. (PSSLAI)
a. Organization and Operation
PSSLAI, the Public Safety Savings and Loan Association, Inc., operates
as a financial institution in the Philippines. It was established on July 1, 2003,
with a clear and noble mission: to serve and protect those who serve and
protect our communities. This mission stems from the need that arose with
the separation of the Philippine National Police (PNP) from the Armed Forces
of the Philippines (AFP) and the subsequent enactment of Republic Act No.
8367.
PSSLAI operates as a non-stock savings and loan association (NSSLA),
which is a specific type of financial institution mandated by Republic Act No.
8367. This act provides for the regulation of the organization and operation
of NSSLAs, outlining that such institutions shall confine their membership to
a well-defined group of persons and shall not transact business with the
general public.
PSSLAI was founded on the principle of upholding the best interests of
the public safety sector. This commitment is deeply rooted in its core values,
including unity, accountability, service excellence, integrity, social
responsiveness, and trustworthiness.
PSSLAI's approach has consistently been member-centric, with an
unwavering focus on providing solutions that cater to the specific financial
needs, aspirations, and circumstances of its members. This personalized
approach has played a pivotal role in fostering a strong sense of community
and support among its members.
A cornerstone of PSSLAI's operation is its commitment to ethical
business practices and integrity. It operates with the highest standards of
conduct, ensuring that all activities are conducted in strict observance of the
law and in accordance with the regulatory guidelines set forth by the Bangko
Sentral ng Pilipinas (BSP) and the Securities and Exchange Commission
(SEC).
The organizational structure below comprises of different departments
who join hands to establish, supervise, and manage the activities of PSSLAI:

Figure 1. PSSLAI Organizational Structure

b. Capitalization
PSSLAI commenced its operations with remarkable resourcefulness,
operating with only 24 dedicated employees, a startup capital of Php 54
million, and a ground floor office located at the Kiangan Hall in Camp
Crame. This limited initial capital, though humble in comparison to its
present-day achievements, served as the foundation upon which PSSLAI built
its financial institution.
From these modest beginnings, PSSLAI worked diligently to fulfill its
promise to public safety personnel. It established a set of financial products
and services meticulously crafted with the satisfaction and financial well-
being of its members in mind. Furthermore, PSSLAI recognized the
importance of innovation and invested in cutting-edge technology to provide
its members with a unique and exceptional banking experience.
c. Services Offered
PSSLAI offers a comprehensive range of financial services tailored to
the unique needs of its members within the public safety sector. These
services are designed to address both short-term and long-term financial
goals and cover a wide spectrum of financial needs.
1. Savings Accounts: PSSLAI provides various savings account options to
help members manage and grow their savings. These accounts may include
regular savings accounts, special savings accounts, or other customized
options designed to encourage saving among its members. Examples are
Capital Contribution, Premium Savings Account, and Cash Advance Storage
Account.
2. Loan Products: PSSLAI offers a variety of loan products to assist
members in achieving their financial objectives. These loans could
encompass both short-term and long-term financing options. Members can
access funds for consumption expenditures, personal finance requirements,
emergencies, or other financial goals. It includes Salary Loan, Emergency
Loan, AffordaLoan, Buy-out Loan, Universal Loan, Back2Back Loan,
Back2Back Loan, Ready Loan, Pension Loan, Vehicle Loan, pre-Owned Loan,
and Motorcycle Loan.
3. Investment Opportunities: PSSLAI integrates a wide array of
investment opportunities into its services. These investment products may
include savings and investment instruments that provide members with the
potential for high returns on their investments, helping them secure their
financial futures.
d. Scope of Operation
PSSLAI's scope of operation extends beyond Luzon, as it serves
members in Visayas and Mindanao as well.
PSSLAI's focus is exclusively on serving the financial needs of the
public safety sector. This sector includes individuals who are members of the
Philippine National Police (PNP), Bureau of Fire Protection (BFP), and other
related agencies involved in safeguarding the well-being of the Filipino
community. Furthermore, PSSLAI extends its services to the immediate
family members of these dedicated public safety personnel.
e. Number of Branches
PSSLAI has strategically expanded its presence by establishing a
network of branches and offices throughout the Philippines, totaling 33
branches and offices across Luzon (22), Visayas (8), and Mindanao (11). This
extensive network of branches ensures that members have convenient
access to PSSLAI's services throughout the Philippines, facilitating their
financial needs and support.
f. Operating Performance
As of December 2022, PSSLAI reported an impressive asset portfolio of
PHP 70.56 Billion, signifying substantial growth since its inception in 2003.
Their commitment to member-centric products and services, as well as
adherence to ethical business practices, has contributed to their success and
the loyalty of their more than 280,000 members.
Furthermore, PSSLAI stands out as the only Savings and Loan
Association, Inc. (SLAI) dedicated to serving the public safety sector that has
been recognized as one of the driving forces behind the economic growth of
the Philippines. In acknowledgment of their substantial contributions, PSSLAI
achieved the distinction of being included in the prestigious Philippines' Top
500 Corporations in 2015 and subsequently moved up to the Top 400
Corporations in 2016, as recognized by Philippine Business Profiles and
Perspectives, Inc.
PSSLAI's reputable standing is further underscored by the strong
endorsements it has received from the leadership of the Philippine National
Police (PNP), Bureau of Fire Protection (BFP), and Philippine Public Safety
College (PPSC). Additionally, PSSLAI operates under the supervision and
authorization of the Bangko Sentral ng Pilipinas (BSP), ensuring that its
financial services adhere to regulatory standards and best practices. It is also
registered with the Securities and Exchange Commission (SEC), which
highlights its commitment to transparency and regulatory compliance,
further enhancing trust and credibility among its members and stakeholders.
These accolades, endorsements, and regulatory oversight underscore
PSSLAI's position as a respected and vital institution within the Philippine
financial landscape, dedicated to the well-being of its members and the
broader economic growth of the country.
II. Composite Wing Savings & Loan Association, Inc. (CWSLAI)

a. Organization and operation

Composite Wing Savings & Loan Association, Inc. (CWSLAI) is a non-
stock savings and loan association which operates in the Philippines since
1981 and was re-incorporated by the Securities and Exchange Commission
on January 8, 1985, and is also supervised and regulated by the Bangko
Sentral ng Pilipinas with Certificate of Authority No. C-002 issued on June 30,
1965.

CSWLAI, with its promising motto “Kaakibat sa Katuparan ng Inyong

Pangarap!”, is a private company working under the industry of Banking and
Finance. It has 42,800 members comprising of personnels from the Armed
Forces of the Philippines (AFP) and the Philippine Air Force (PAF). It has also
established various offices and headquarters across number of cities
nationwide, with its main office situated in Taguig City, Metro Manila in the
islands of Luzon.

On the other hand, the Board of Trustees of the association is

spearheaded by a Chairman of the Board. It also comprised of a President, a
General Manager, Independent Trustees, a Vice President, Vice President for
Collection or the Assistant Corporate Treasurer, Vice President for Human
Resource and Administration or the Assistant General Manager, a Corporate
Treasurer, a Corporate Secretary, Vice President for Management
Information System, and Vice President for Corporate Planning.

This widely known depository institution expanded and transformed

into a successful association due to the continuous and increasing
engagement of the Filipinos to the so-called paluwagan, a culturally
considered form of savings to the Filipinos, which contributed to the
patronization of their services. It also aims “to provide quality, responsive
and efficient financial services to the members with reasonable and
affordable interest rates and attractive and competitive rate of return on
investment in accordance with policies of the regulatory agencies”. It also
envisions “to become one of the leading Financial Institutions in the non-
stock savings and loan industry, and to assist in the development of the
economic and social well-being of their members for them to become
responsible and progressive members of the society”. Lastly, with their
competence, it is also committed “to keep and uphold the integrity of
management by adhering to the highest standards of good corporate
governance, to sustain business growth aimed at strengthening the
company’s financial stability, and to remain focused on corporate social
responsibility of improving the lives of its members through various
reasonable and affordable financial services”.

b. Capitalization
The Composite Wing Savings and Loan Association, Inc. formerly
started as group thrift savings or paluwagan of military and civilian personnel
of the 205th Tactical Operations Wing (TOW) of Philippine Air Force (PAF) at
Nichols Air Base that started with 200 members only, and had an initial
capital investment amounting to P5,000.00 only.
c. Services offered
Accordingly, CSWLAI offers a consumption loan for its members from
the Philippine Air Force (PAF) active military & civilians, and a pension loan
for its members from the Armed Forces of the Philippines (AFP) and
Philippine Veterans Affairs Office (PVAO), and a sufficient fund loan, including
a capital contribution with 1.6% dividend rate annually, and savings
deposits at 6% interest rate annually or 3% semi-annually. It also provides
an incentive to its member-borrowers for loyalty and continuous patronage
of their loan products, a 3% cash gift of loan availed if a member-borrower
refer a friend to this association, a free membership with P1,000 for its new
member-borrowers, and a bereavement financial assistance for the bereaved
dependents of its members.

d. Scope of operation
The association put significance to sustaining corporate social
responsibilities of providing financial assistance to various units of Armed
Forces of the Philippines (AFP) and other civic & non-government
organizations with legitimate cause, donations for those affected by
calamities, and bereavement assistance for our members.

It also focuses on providing services to its regular members, the active

and military Philippine Air Force (PAF) personnel and the active and retired
Philippine Air Force (PAF) civilian personnel, and to its associate members,
the dependents of regular members within the second degree of
consanguinity or affinity, and the AFP retirees and pensioners.

e. Number of branches

Through establishing several offices in various key locations in the

Philippines and for upgrading its systems, CSWLAI took over a wide range of
expansion of its overall financial services nationwide, which successfully
settled sixteen (16) offices in Luzon, including its head office, four (4)
offices in Visayas, and two (2) offices in Mindanao.

f. Operating performance
CSWLAI is head high of its quality financial services to its members and
continued strict adherence to governing laws on non-stock savings and loan
associations, and compliance with implementing rules and regulations of
regulatory/supervisory agencies such as the Bangko Sentral ng Pilipinas
(BSP) and Securities and Exchange Commission (SEC). Its commitment to
good governance has helped them largely achieve a P8.2 billion mark of its
financial position, which allowed them to maintain its dividend rate at 16%
per annum for deposits in capital contribution account (CCA) and 7% per
annum in savings deposit account (SDA) as of the end of 2018.
Throughout its remarkable performance for several outstanding years,
CSWLAI has also been truly acknowledged by the Association of Non-stock
Savings and Loan Institutions (ANSLI) Inc. through awards and recognitions
bestowed to the association, including its notable and major awards in 2002,
2012 and 2013 as the “Savings and Loan Association of the Year”.

III. Armed Forces and Police Savings & Loan Association, Inc.
(AFPSLAI)

a. Organization and operation

The Armed Forces and Police Savings and Loan Association, Inc. is a
private, non-stock and non-profit savings and loan association established
and registered with the Securities and Exchange Commission (SEC) on
November 7, 1972.
Supervised by the Bangko Sentral ng Pilipinas, AFPSLAI aims to
promote industry, frugality and savings among its members from the AFP,
PNP, BFP, BJMP and their civilian employees. It is categorized as a non-bank
financial intermediary. Their total asset reached more than P142 Billion (as of
December 2022). Their vision is to become the leader in the financial
services industry, and the role model in good governance, managed and led
by a highly motivated workforce and trusted by fully satisfied members by
2027. It is their vision to help improve the quality of life of their members by
providing them excellent products and services. Their core values include
malasakit sa mga miyembro, sa kumpanya, at sa bansa, good governance,
and excellence.

It was initially conceptualized to address the need of uniformed men

and women for loans to augment their meager salary. Particularly, when the
AFP Mutual Benefit Association, Inc. (AFPMBAI) was stopped by the Insurance
Commission in 1968 from engaging in direct lending. Upon joining the
Association, a member is required to submit a payroll deduction contribution
of Php 5.00 each month, which was decided upon in consultation with
several Finance Centers. The initial Php 100.00 was considered a capital
contribution and cannot be withdrawn within three (3) years, with the
exception of upon leaving the Association. Members could also pay the
required minimum capital contribution in one single sum of Php 100.00. The
subsequent monthly payments were regarded as supplementary capital
contributions, savings deposits, or time deposits, all of which carried interest
rates of 6% to 8% annually.

Their management team is composed of the Office of the Chairman,

Office of the President & CEO, Office of the EVP-GM, Treasury Department,
Comptrollership Department, Administration Department, Operations
Department, NCR and Luzon Area, and Visayas and Mindanao Area.
b. Capitalization
With only a seed capital of Php 1,000,000.00 from AFPMBAI and a
manpower of eleven (11), AFPSLAI started its operations in a small office
space at the ground floor of the old AFPMBAI building. Within a short span of
three years, AFPSLAI registered an unprecedented growth and thereafter declared its
first ever dividend at 18 percent.

c. Services offered
Members have access to their loan products which can help you with
their financial needs. They offer salary loans, personal loans, housing
loans, auto loans and even business loans to name a few. The interest
rates are actually very competitive. More importantly, members of AFPSLAI
can avail of their deposit products. Particularly, the Capital Contribution
Account (CCA) which is a high dividend earning “savings” account; the
Pension Account for pensioner remittances, and the simple Savings Deposit
Account, which gives a tax-free 3% per annum interest. AFPSLAI also has
other products and services such as ALMS, which is similar to life insurance;
AMD, an automated investment service; APEX, for remittance of pensions;
and SMS, a text-message service. They also offer college scholarships.

d. Scope of operation
Towards the end of the 70s, it decided to open its doors to the
policemen; thus, it became the Armed Forces and Police Savings and Loan
Association, Inc. With the widening of its membership base, AFPSLAI likewise
embarked into expanding its operational jurisdiction. Hence, various service
centers were established during the mid-80s to reach out to its members
especially those in field. And not everyone can open an account with them,
or in more exact terms, become a member of the association.

Regular Membership is limited to:

 Military Officers
 Military Enlisted
 AFP/PNP Retiree/Pensioner
 AFP/PNP Pensioners (Widow/Widower/Orphan)
 Inactive/Reserved Officer
 PNP Officer/Non-Officer
 Civilian Employees (AFPSLAI-accredited institutions)
 Resigned from Service/Honorably Discharged (for AFP/PNP
military/police only)
 BFP/BJMP Officer/Non-Officer

Meanwhile, Associate Membership is open to:

 Legitimate spouse of regular married member
 Legitimate children of the regular married member (21 years old and
above)
 Philippine Veterans Administration Office (PVAO) pensioners
 PNPA/PMA/PAF Cadet
 Candidate Officers (OCS and NOCC)

e. Number of branches

To date, there are 32 branch offices and 52 satellite offices established in

strategic locations around the country to serve 603, 687 members from the AFP, PNP,
BJMP and BFP and its civilian employees. Their “main branch” or head office is
located at EDSA cor Bonny Serrano Rd., Camp Aguinaldo, Quezon City.

f. Operating performance
AFPSLAI is considered as one of the county’s premier Non-
StockSavings and Loan Associations (NSSLA). They have been conferred
numerous awards including the SLAI of the Year Award for 2017. Added to
that, AFPSLAI also received the Award of Excellence in Profitability & Growth;
Award of Excellence in Debt Utilization & Stability; Award of Merit in Loans &
Discount Efficiency; and the Gawad ANSLI Award for Meaningful CSR
initiatives. While other companies have suffered a reduction in total assets,
AFPSLAI's total assets as of year-end 2020 still managed to register a double-
digit growth of 11% over 2019 as it reached Php 126.56 B by the end of
December 2020.

IV. Air Materiel Wing Savings & Loan Association, Inc.

a. Organization and Operation
The Air Materiel Wing Savings & Loan Association, Inc. (AMWSLA) is a
financial institution that has been serving the financial needs of military
personnel and their families since its inception. Established in June 13, 1956,
AMWSLA was created with the primary goal of providing financial stability
and support to members of the Air Materiel Wing, a vital component of the
United States Air Force.
AMWSLA operates as a non-profit cooperative financial institution,
meaning it is owned and operated by its members, who are also its
customers. This unique structure ensures that the institution's focus remains
on the best interests of its members rather than generating profits for
external shareholders. The association's headquarters are located at Quezon
City, with a commitment to delivering exceptional financial services to
military members across the nation.
b. Capitalization
AMWSLA's capitalization is a result of the collective contributions and
investments made by its members. When individuals join the association,
they become members and are required to deposit a minimum amount as
their share in the organization. This capital serves as the foundation for the
association's lending activities. Additionally, AMWSLA may issue certificates
of deposit (CDs) to members and borrow funds from other financial
institutions to further bolster its capital base.
The association's financial health is regularly reviewed by its board of
directors, ensuring that it maintains a robust capital position to meet the
financial needs of its members and sustain its operations effectively.
c. Services Offered
AMWSLA offers a comprehensive range of financial services tailored to the
specific needs of its military members and their families. These services
include:
1. Savings Accounts: Members can open savings accounts with
competitive interest rates to help them save for various goals, such as
emergencies, education, or retirement.
2. Loans: AMWSLA provides a variety of loan products, including
personal loans, vehicle loans, and mortgage loans. These loans are
typically offered at favorable interest rates with flexible terms.
3. Certificates of Deposit (CDs): Members can invest in CDs, which
offer higher interest rates than regular savings accounts, with options
for various terms.
4. Checking Accounts: The association offers convenient checking
accounts with features like direct deposit, bill payment, and mobile
banking.
5. Financial Counseling: AMWSLA is committed to helping its members
make informed financial decisions. They provide financial counseling
services to assist members in managing their money effectively.
d. Scope of Operation
AMWSLA primarily serves members of the Air Materiel Wing of the United
States Air Force and their immediate families. While its roots are firmly
grounded in the military community, the association may extend its services
to veterans and other military-related organizations based on its bylaws and
regulatory approvals.
The association's scope of operation is not limited to a specific geographic
area, as it aims to provide financial services to military personnel stationed
both domestically and internationally. This commitment to accessibility
ensures that members can access their accounts and services regardless of
their duty station.
e. Number of Branches
As of 2023, AMWSLA operates 21 branches strategically located on or
near military bases and installations. These branches are staffed by
dedicated professionals who understand the unique financial needs of
military members.
Additionally, the association offers online banking services, allowing
members to access their accounts and conduct transactions from anywhere
in the world. The online platform provides 24/7 access to account
information, transfers, and bill payments, enhancing convenience and
accessibility for members.
f. Operating Performance
AMWSLA prides itself on its strong financial performance, driven by its
dedication to responsible financial management and member-focused
services. The association regularly publishes financial reports, which are
available to members for transparency and accountability purposes.
Key performance indicators (KPIs) that demonstrate the association's
financial health and stability include:
1. Asset Growth: AMWSLA's total assets have consistently grown over the
years, a testament to its ability to attract and retain members and
effectively manage its financial resources.
2. Loan Portfolio Quality: The association places a strong emphasis on
responsible lending practices. This is reflected in the quality of its loan
portfolio, which maintains low delinquency rates. By carefully
assessing borrowers' creditworthiness and offering competitive interest
rates, AMWSLA ensures that its members can access credit while
minimizing the risk of default.
3. Member Satisfaction: AMWSLA places a high priority on member
satisfaction. To gauge member sentiment and continually improve its
services, the association conducts regular member surveys and
feedback mechanisms.
V. Philippines Navy Savings and Loan Association, Inc. (PNSLAI)
a. Organization and Operation
The Philippine Navy Savings and Loan Association, Inc. (PNSLAI) is an
established financial institution that has humble beginnings at the premises
of the Philippine Navy Finance Center (PNFC) in Fort Bonifacio, Taguig City.
Started as a “paluwagan” among the PNFC personnel, it was organized pn
April 01, 1987, and initially named PNFC Savings and Loan Association
(PNFCSLA) during the incumbency of the late PNFC Commander, CAPT
NARCISO M LISTON PN(GSC).
On February 1990, the application for registration, together with the
Articles of Incorporation and By-Laws was submitted to the Bangko Sentral
ng Pilipinas (BSP). It was approved to operate under Registration No. NS-093
on September 17, 1993 with business name, Philippine Navy Savings and
Loan Association, Inc. (PNSLAI).
Figure 2. PNSLAI Organizational Structure
b. Capitalization
With an initial capital investment of more or less Sixty Thousand Pesos
(P 60,000.00) and about fifty (50) members, it grew into a billion-peso
savings and loan association. By end of 2021, it served a total of forty-eight
thousand nine hundred seventy-seven (48,977) members belonging to a
well-defined group of Philippine Navy, Philippine Marines and Philippine Coast
Guard personnel, both active and retired, and their dependents, civilian
employees and honorary members.
c. Services Offered
PNSLAI services offered include the following
 Back - to - back loan
 Value loan
 Multi - purpose promotional loan
 Pension loan
d. Scope of operation
 To be the preferred financial institution in the savings and loan
industry.
 To provide responsive financial and allied services in order to enhance
the quality of life of the members and their dependents.
 To the Members: by living up to the values of integrity and selfless
service to ensure the security of capital contribution and provide the
lowest possible rates on loans.
 To the Employees: by taking care of their welfare and career
development
e. Number of branches
 Luzon (6)
1. Cavite Branch
2. Zambales Branch
3. Quezon City Branch
4. La Union Branch
5. Bicol Branch
6. Palawan Branch
 Visayas (1)
1. Cebu Branch
 Mindanao (2)
1. Davao Branch
2. Zamboanga Branch

f. Operating performance
For 34 years, PNSLAI has maintained its status as one of the best
performing savings and loan associations in the country. Currently led by
BGEN EUGENIO N CLEMEN AFP(RET), the 174-strong team provides quality
and efficient financial services nationwide, operating in ten (10) Branches,
four (4) satellite offices, and four (4) mobile desks, supported by the
Corporate Office located at Molave St. Naval Station Jose Francisco, Taguig
City. The new corporate headquarters is nearing completion at Lot 12 Blk. 54
Phase IV, Diego Silang Street, AFP Officer’s Village, Fort Bonifacio, Taguig
City to better serve its dear member.

References:
PSSLAI – Public Safety Savings & Loan Association Inc. | Philippines. (2023,
May 16). PSSLAI. Retrieved September 10, 2023, from
https://www.psslai.com/
CSWLAI. (2023). Composite Wing Savings and Loan Association, Inc.
Retrieved on September 9, 2023 from https://www.cwslai.com/
Iloilodirecotry.com. (2022). Composite Wing Savings and Loan Association,
Inc. Iloilo directory, com. Retrieved on September 9, 2023 from
https://iloilodirectory.com/listing/composite-wing-savings-and-loan-
association-inc/
ZoomInfo technologies LLC. (2023). Composite Wing Savings and Loan
Association, Inc. – Business Information. Retrieved on September 9,
2023 from https://www.zoominfo.com/c/composite-wing-savings-and-
loan-association-inc/452509004
AFPSLAI – Armed Forces and Police Savings and Loans Association, Inc.|
Philippines. (2023, July 21). AFPSLAI. Retrieved September 10, 2023,
from https://www.afpslai.com.ph/