MANILA — President Rodrigo Duterte signed executive order number 44 (EO 44) on September 28, paving the way for the creation of an Overseas Filipino Bank (OFB) to provide financial products and services tailored to the needs of overseas Filipinos.
EO 44 approves the acquisition of Philippine Postal Savings Bank (PPSB) by the Land Bank of the Philippines (LBP) through transfer of shares.
The Philippine Postal Corporation, which owns PPSB, and the Bureau of Treasury were directed under EO 44 to transfer their PPSB shares to Land Bank at zero value.
The PPSB will be converted to a new entity to be named the Overseas Filipino Bank (OFB).
Land Bank was ordered to infuse the necessary capital to the Overseas Filipino Bank to strengthen its capital base and to enable it to attain its primary agenda
In converting the PPSB to a bank that will service the various financial and banking needs of overseas Filipinos, EO 44 noted the PPSB, which has 31 branches nationwide, is strategically equipped to provide the needed financial and remittance services to overseas-based Filipinos and their families.
The board of directors of the Overseas Filipino Bank will consist of nine members with the LPP president as the chairperson.
The other eight members of the Board are the LBP-designated president as the vice chairperson, four LBP-designated directors as members; a member representing the Department of Labor and Employment (DOLE); a member representing the Overseas Workers Welfare Administration (OWWA); and a private sector member representing overseas Filipinos.
The President shall appoint the members of the Board representing the DOLE, OWWA and overseas Filipinos .
Under EO 44, all PSSB officers and employees who elect to retire or are separated from the service will be provided early retirement incentive plans.
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.
Meanwhile, Finance Secretary Carlos Dominguez III on Monday hailed the signing of an Executive Order for the establishment of a bank specifically for Overseas Filipino Workers.
Dominguez, in a Viber message to reporters, said the Department of Finance “moved quickly to deliver on the President’s promise to create a financial institution dedicated to 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,”
-Finance Sec. Dominguez
The Department of Finance first broached the establishment of an OFW-focused bank as part of the Duterte government’s way to help alleviate lives of the more than nine million OFWs and their families