INTERIM REPORT : COOPERATIVE DEVELOPMENT BANK - BANCOOP

Evaluation covers the period from 4/6/77 to 12/31/78. No evaluation methodology is specified. BANCOOP has added 167 cooperatives to its system which now totals 524. In the targeted project areas of Junin, Cuzco-Arequipa, Cajamarca-La Libertad, and Huanuco-Tingo Maria, BANCOOP has admitted 95 cooperatives. Within these areas, small farmers, artisans, and small entrepreneurs have been targeted. These areas have been serviced by BANCOOP field agents from Lima and from branch offices in Trujillo and Arequipa. Additional branch offices in Huancayo and Cuzco are expected to open. BANCOOP will provide credit funds, technical assistance and institutional support to these areas. A.I.D. will provide a loan to BANCOOP to expand its credit within the target area, and it will provide a grant for technical aid, data control equipment, and foreign technical training. BANCOOP has done well financially and has current assets of $2.1 million and deposits of $650,000, which are increases of 124% and 252%, respectively, during the last 29 months. BANCOOP"s net income for 1978 tripled the 1977 figure. This growth is attributable to BANCOOP"s aggressive marketing strategy and its improved relations with member cooperatives. BANCOOP has established a correspondent relationship with Banco Popular to facilitate a check-cashing operation for checks drawn on BANCOOP"s account and the Banco Popular has increased its technical assistance to the Bank. BANCOOP staff have conducted seminars in rural areas on credit analysis and savings plans. In addition, BANCOOP has extended its banking hours, and its deposit interest rates have been maintained at 0.5% above commercial bank offerings. According to the Agricultural Cooperative Development International Review, technical assistance to BANCOOP"s management, staff, and selected administrators is needed. Changes feasible without outside aid have been implemented.