Duterte signs EO creating bank for OFWs

FILE: President Rodrigo Duterte has signed an executive order (EO) that will pave the way for the creation of an Overseas Filipino Bank (OFB) dedicated to provide financial products and services tailored to the requirements of overseas Filipinos. (ALBERT ALCAIN/PRESIDENTIAL PHOTO)

MANILA — President Rodrigo Duterte has signed an executive order (EO) that will pave the way for the creation of an Overseas Filipino Bank (OFB) dedicated to provide financial products and services tailored to the requirements of overseas Filipinos.

EO No. 44, which was signed by Duterte on September 28, approved the acquisition of Philippine Postal Savings Bank (PPSB) by the Land Bank of the Philippines (LBP) through transfer of shares.

The PPSB would then be subsequently converted to a new entity to be named the Overseas Filipino Bank (OFB).

Philippine Postal Corporation, which owns PPSB, and the Bureau of Treasury were directed under the EO to transfer their PPSB shares to Land Bank at zero value.

In converting the PPSB to a bank that will service the various financial and banking needs of overseas Filipinos, EO No. 44 noted that PPSB, which has 31 branches nationwide, is strategically equipped to provide the needed financial and remittance services to overseas-based Filipinos and their families.

To strengthen the capital base of OFB and enable it to attain its primary agenda, Land Bank was ordered to infuse the necessary capital to the OFB.

The board of directors of the OFB will consists 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 members of the Board representing the DOLE, OWWA and overseas Filipinos shall be appointed by the President.

Meanwhile, EO No. 44 provided for an early retirement incentive plan for all PSSB officers and employees who elect to be retired or may be separated from the service.