Manila, Philippines – President Rodrigo Duterte has 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).
Through this, a new bank that is dedicated to provide financial services to the Overseas Filipino Workers will be available soon.
President Duterte has signed the Executive Order No. 44, which aims to develop the rural financial sector and to be able to provide financial and remittance services for the OFWs 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 reads.
The Executive Order also states that OFW contributor to the country’s economic development 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 states.
Under the same Order, the President directed the PPC and the Bureau of Treasury to transfer their shares in PPSB to Land Bank at 0 values, while PPSB will then transfer all assets, liabilities and other records to LBP. By doing so, necessary capital will be infused to OFB to attain its goals of servicing the financial and banking needs of the OFWs.
The said EO also states that it authorized the LBP to implement a reorganization plan for OFB and check the details of its personnel if needed.
The order was signed last September 28 and shall take effect immediately after publication in the Official Gazette or in the newspaper.
Source: Manila Bulletin