President Duterte To Open P3 Billion OFW Bank In The Philippines, Saudi Arabia This September 2017
The Land Bank of the Philippines will open in September next
year a P3 billion bank which will be partly owned by overseas Filipino workers
(OFWs), the Department of Finance (DOF) said.
Finance Secretary Carlos Dominguez III said the OFW Bank
will be established through LandBank’s acquisition of the Philippine Postal
Savings Bank, which will be converted into a LandBank subsidiary that will be
owned 30 percent by OFWs.
“The acquisition of the Postal Bank will be completed by the
third quarter of 2017, after all required procedures are completed and
approvals are secured. The LandBank has sufficient resources to complete this
transaction,” said Dominguez, who Chairs the LandBank Board of Directors.
As of September 30, 2016, LandBank ranked as the country’s
4th largest commercial bank with total capital of P90.9 billion and assets
worth P1.3 trillion.
The DOF noted that a bank dedicated to the needs of OFWs is
one of the promises of President Rodrigo Duterte to Filipino migrant workers.
LandBank President Alex Buenaventura said it would take
eight months to accomplish the requirements that would convert the Postal Bank
into a LandBank subsidiary.
“The OFW bank will be a listed company with an authorized
capital of P3 billion and a subscribed capital of P2 billion, of which P1
billion is paid up by the LandBank. Another P1 billion will be open for
subscription to OFWs who can acquire them by buying shares in the bank,”
Buenaventura said.
The DOF said LandBank will have to seek clearances from the
Governance Commission for Government Owned and Controlled Corporations (GCG)
and the Philippine Competition Commission (PCC), as well as approvals from the
Monetary Board, Securities and Exchange Commission (SEC) and the Bangko Sentral
ng Pilipinas (BSP) for the OFW bank to be operational by September 1, 2017.
“We are going to do focus group discussions with
representatives of our target markets to determine where and what services are
needed, and what name and logo to adopt for the bank,” Buenaventura said.
While the OFW bank is still in the process of being
established, Dominguez said LandBank “will seek to establish a unit in Saudi
Arabia to assist the OFWs there.”
LandBank will set up a Representative Office in Saudi Arabia
to cater to the banking needs of some 800,000 Filipino workers based in that
country.
Buenaventura said LandBank decided to open its Saudi unit in
Riyadh because 40 percent of OFWs based in that country reside there.
“The LandBank unit will be opened near the Philippine Labor
Office or near a place where OFWs usually converge and meet,” he said.
Buenaventura said the Riyadh unit will initially offer
financial education and investment counseling services to OFWs.
He said that starting January 2, 2017, LandBank, with the
involvement of the Commission on Audit and the BSP, will begin undertaking due
diligence to start the process of converting the Postal Bank into a LandBank
subsidiary.
“LandBank would also have to draw up a purchase agreement
and amend its articles and bylaws to formalize its acquisition of the Postal
Bank,” he added.
Source: The Manila Times
President Duterte To Open P3 Billion OFW Bank In The Philippines, Saudi Arabia This September 2017
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January 21, 2017
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