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Duterte signs EO creating bank for OFWs

Published

By Genalyn D. Kabiling

A new bank dedicated to provide financial services to overseas Filipino workers is expected to open soon.

This, after President Duterte approved the acquisition of the Philippine Postal Savings Bank Inc. (PPSB) by the Land Bank of the Philippines (LBP) and its conversion into an Overseas Filipino Bank (OFB).

In Executive Order No. 44, the President said the PPSB, geared towards developing the rural financial sector, is strategically equipped to provide financial and remittance services to Filipinos overseas and their families.

“Subject to the necessary approval and/or clearance of the Bangko Sentral ng Pilipinas, Securities and Exchange Commission, Philippine Deposit Insurance Corporation and the Philippine Competition Commission, the acquisition of PPSB by LBP though transfer of shares and its consequent conversion into an Overseas Filipino Bank (OFB) is hereby approved, in accordance with existing laws, rules and regulations,” the order read.

EO 44 noted that OFWs, who contribute to the country’s economic growth through their remittances, should be “given provision of priority support for their growing financial needs.”

“There is a need to establish a policy bank dedicated to provide financial products and services tailored to the requirements of overseas Filipinos, and focused on delivering quality and efficient foreign remittance services,” the order read.

The Postbank, created in 1906 and revitalized as PPSB in 1994, serves as a government thrift bank that provides financial credit to the rural sector. It is a subsidiary of the Philippine Postal Corporation (PPC).

Setting up OFB

In EO 44, the President directed the PPC and the Bureau of Treasury to transfer their shares in PPSB to Land Bank at zero value. The PPSB has also been directed to transfer all assets, liabilities and other records to LBP which will infuse the necessary capital to OFB to attain its agenda of servicing the financial and banking needs of OFWs.

The same EO authorized the Land Bank to implement a reorganization plan for OFB and cause the detail of its personnel as necessary.

The affairs and business of the OFB will be managed by a board of directors consisting of nine members. The board includes the LBP president as chairperson, LBP designated OFB President as vice chairperson, four directors as members, a member representing the Department of Labor and Employment, a member representing the Overseas Workers Welfare Administration, and a private sector member representing overseas Filipinos.

The members representing DOLE, OWWA, and oversees Filipinos will be appointed by the President.

EO 44 also provided for an early retirement incentive plan for affected Postbank personnel. Funds for the separation pay and other benefits will be sourced from the PPSB or whenever necessary, the funds of the LBP.

Prior to the transfer of shares, the PPSB was directed to return to the National Treasury the balance amounting to P24.23 million from the previously released P500 million to fund the Project Dagdag Regular Income Via Entrepreneurship (DRIVE).

The order, signed last September 28, shall take effect immediately after publication in the Official Gazette or in a newspaper.

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  • SUPERBI

    a senator should be thinking of making laws for the good of the country. this senator is only focused on destroying the credibility of our president. this only shows that he is only full of politics and not for the good of the country. he does not have any other agenda to help the country and the people/

    • Liwanag Para sa Bayan

      this so called senator does not know how to be a senator. all he does is make noise and press release. he does not know the true work of senator and instead only want political considerations given to him. he speaks out against the government but he himself does not know how to run anything.
      ,,

    • MAYPAGASA

      this former rebel soldier cannot be trusted. he turned his back on his superiors when he conducted his siege last time. he cannot lead a group of soldiers what more of the entire country. he does not know anything on how to handle and solve the problems of our country. he is just making noise./

    • Simon antonio

      this senator will always cry and make noise whenever he does not get what he wants. he is proven to be a rebel with no clear cause and no clear direction. he has not really seen he cared for the country but only for himself. he will do everything to make himself in the public for his political purpose
      ,

    • Emilio

      this senator is proven to be a coward and who has no clear principles. he changes his agenda an is only after his self interest. he is a former soldier who does not have the right discipline to follow his superiors. we cannot expect good things from this senator only noise.//

  • Liwanag Para sa Bayan

    this senator only won because of pure luck. he does not have the right attitude and credibility to win an election. he is only making noise every time without any real sense in how to help the country grow and the people to be comfortable. he is only after his political ambition at all times,,

  • MAYPAGASA

    this senator is always grandstanding and will do everything to make him in the news. he is only making noise so the people will always remember him. he has not proven anything and yet he has the guts to speak out against the administration. he has not proven his capability to serve and his capability to be a leader/

  • Simon antonio

    this senator is only after his political career and not for the good of the country. he will only make noise to make the public aware that he is still active. he has no clear agenda and is only after the benefit of himself. he should not be given attention. he is a man who only knows his political agenda no more
    /

  • Emilio

    the country will not benefit from this senator. he is only making noise as he knows from the last election that he will not win anymore and get elected. he has been making baseless allegations on the president and is making noise so that the people will notice him. he doesnt deserve our attention. ,,

  • Parasa Bayan

    noise making is the only talent of this senator. he is known to make noise and to create trouble then he will abandon everything at the end. we cannot trust a man with this reputation. he is never a good leader and will never be in the future of philippine politics..,,

  • Duh

    This story is about the OFW Bank .