After President Rodrigo Duterte has approved the Land Bank of the Philippines’ acquired the Philippine Postal Savings Bank, a new entity will be named as the Overseas Filipino Bank.
What is It?
The OFW Bank aims to deliver microfinance and micro-insurance products and services for Overseas Filipino Workers. The Executive Order No. 44 states that the PPSB will be acquired by the Land Bank of the Philippines and will be converted into the OFW Bank.
Overseas-based Filipinos, who contribute to the country’s foreign exchange income, currency stability, employment, and overall economic growth through their remittances should be given provision of priority support for their growing financial needs.
The OFW Bank will be established to provide financial products and services tailored to the requirements of OFWs and to focus on delivering quality and efficient foreign remittance services. The OFB is also expected to work hand-in-hand with the government’s PERA program.
ICYMI: Pres. Duterte has ordered the conversion of Phl Postal Saving Bank into Overseas Filipino Bank pic.twitter.com/nDl3jgtgp5
— Trisha Macas (@trishamacas) October 9, 2017
Who Will Manage It?
The OFB will be managed by a nine-member Board of Directors composed of:
- LBP President as chairperson
- LBP-designated OFB president as vice chairperson
- Four LBP-designated directors or officers as members
- One representative each from the Department of Labor and Employment, Overseas Workers Welfare Administration, and a private sector representing the OFWs.
When Will It Start?
The Banko Central ng Pilipinas announced last Friday, December 22, that it already gave Landbank the green light to acquire the PPSB. The opening of the PFB is expected as early as February 2018.
The Landbank president, Alex Buenaventura said that they are eyeing the launch of the pilot OFB in Dubai and another one in Bahrain is expected to open in April 2018.A total of 25 branches will be opened in the United States, Middle East, Japan, and Hong Kong. More branches are expected to open in the next years.