Duterte-promised OFW bank to open shop in January

A bank catering to the needs of overseas Filipino workers (OFWs) will commence operations in January, with the Bangko Sentral ng Pilipinas (BSP) giving its commitment to fast-track the dissolution of its predecessor bank.

Landbank president Alex V. Buenaventura told the Inquirer Thursday he was informed by BSP Governor Nestor A. Espenilla Jr. the Monetary Board could approve Land Bank of the Philippines’ acquisition of Philippine Postal Savings Bank (Postbank) before the end of the year. The Monetary Board is the BSP’s highest policymaking body.

Last month, President Rodrigo Duterte signed Executive Order No. 44 creating the Overseas Filipino Bank.

Under the executive fiat, the Philippine Postal Corp., which currently owns Postbank, and the Bureau of Treasury were ordered to transfer their shares in Postbank to Landbank at zero value.

Landbank was also ordered to infuse capital into Overseas Filipino Bank.

Buenaventura also disclosed that Landbank on Thursday finally submitted to the BSP its application to acquire Postbank.

Landbank is seeking approval for a P1-billion authorized capital, of which P700 million would be classified into common shares and P300 million would be reclassified into preferred shares. The shares would be offered to OFWs, Buenaventura said.

Landbank also submitted to the Philippine Competition Commission (PCC) a notification to acquire Postbank.

Under the country’s antitrust law or Republic Act No. 10667, all mergers and acquisitions worth P1 billion and above must first be approved by the PCC.

Buenaventura sees the launch of Overseas Filipino Bank, specifically of its head office in Liwasang Bonifacio, will push through in January.

By April, the bank would already be able to open its first representative office in Dubai, Buenaventura added.