‘OFW Bank’ set up as Duterte orders transfer to LandBank of Postalbank shares

October 10, 2017 - 12:18 AM
The decisions of President Duterte, posing with repatriated OFWs from the Middle East in this photo, caused fear and confusion among many Filipinos. (KRIZJOHN ROSALES/Philstar)

MANILA – Finance Secretary Carlos Dominguez III on Monday hailed the signing of an Executive Order (EO) for the establishment of a bank specifically for Overseas Filipino Workers (OFWs).

This after Malacanang made public on Monday EO 44, signed last Sept. 28, directing the Philippine Postal Corporation (PhilPost) and the Bureau of the Treasury (BTr) to transfer their Postalbank shares to the Land Bank of the Philippines (Landbank) at zero value.

Dominguez, in a Viber message to reporters, said the Finance department “moved quickly to help deliver on the President’s campaign promise to create a financial institution totally dedicated to catering to the needs of all overseas Filipinos.

“This financial institution will be a subsidiary of Landbank, the govenrment-owned and -controlled bank with the most extensive branch network that will cater to the needs of the families of foreign-based Filipinos,” he added.

Establishment of an OFW-focused bank was first broached by the Department of Finance as part of the Duterte government’s way to help alleviate lives of the more than nine million OFWs and their families.

Under the EO, Landbank was ordered to ensure the capitalization of Overseas Filipino Bank, which will be headed Landbank’s chairperson.

Postalbank offcials who will be affected by this transfer will be offered an early retirement incentive plan.
Dominguez earlier said Landbank, after due diligence, has placed the Postalbank’s valuation at negative P580 million.

Bangko Sentral ng Pilipinas (BSP) Governor Nestor A. Espenilla Jr. earlier said there is no need for a Congressional approval for this transfer since it does not involve any changes in Landbank’s Charter.