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Proposed OFW Bank May Not Need Congress’ Approval

Proposed OFW Bank May Not Need Congress’ Approval

Acquisition by the Land Bank of the Philippines (Landbank) of Postal Bank to be utilized as an Overseas Filipino Workers’ (OFW) Bank may not need a congressional approval.

“Since the transaction doesn’t seem to involve any change in LBP charter, the transaction may no longer need congressional action to execute. This simplifies matters,” Bangko Sentral ng Pilipinas (BSP) Deputy Governor Nestor Espenilla Jr. told PNA.

Last Saturday, President Rodrigo R. Duterte said Landbank is in the process of acquiring Postal Bank.

“We are acquiring it. We are now preparing the law,” he told journalists who covered his working trip to Hong Kong.

The President assured OFWs in Hong Kong that the government is doing its best to provide the workers programs that would eventually help them gain more skills that they can use once they are back in the Philippines.

Espenilla said the operational and financial due diligence for the Landbank acquisitioin “have just been completed.”

“LBP is set to appoint new directors and key management,” he said, citing that this “also needs BSP approval.”

“They are in close coordination with BSP to expedite transaction. Good progress is being made,” he added. (JSV/PNA)