THE Monetary Board, the policy-making body of Bangko Sentral ng Pilipinas, has approved the acquisition of thrift bank Philippine Postal Savings Bank by state-run Land Bank of the Philippines.
Bangko Sentral Governor Nestor Espenilla Jr. said Friday with the approval, the proposed establishment of the Overseas Filipino Bank would be done early next year. The Overseas Filipino Bank will become a subsidiary of LandBank.
Bangko Sentral Deputy Governor Chuchi Fonacier said at the sidelines of an event the review of the documents for the acquisition would be over soon and hopefully Overseas Filipino Bank would start operations by February next year.
Malacanang already approved the acquisition a few weeks ago.
Finance Secretary Carlos Dominguez III earlier said the acquisition would pave the way for a financial institution that would cater not only to the country’s migrant workers, but to other overseas-based Filipinos as well.
Dominguez said expanding the coverage of the new bank—not just for overseas workers—would make it “more inclusive” as it would also cover Filipinos based overseas, including immigrants to other countries.
Duterte ordered Philippine Postal Corp. and the Bureau of the Treasury to transfer their PSPB shares to the LandBank at zero value under Executive Order No. 44 issued on Sept. 28 by President Rodrigo.
The EO stated that the former PPSB will be converted into the “Overseas Filipino Bank,” which is a “policy bank dedicated to provide financial products and services tailored to the requirement of overseas Filipinos” and will focus on delivering “quality and efficient foreign remittance services.”
Dominguez said at a recent press briefing one of the key featuresof the OFB would be a remittance service for overseas Filipino workers as well as a loan program for Filipinos planning to return home to start businesses or build their homes.
He said LandBank and the BTr were also exploring ways of mobilizing the savings of overseas-based Filipinos for them to invest in the country’s capital markets.