Malacanan on Monday, October 9, released Executive Order (EO) No. 44, approving Land Bank of the Philippines’ (LBP) acquisition of Philippine Postal Savings Bank (PPSB).
EO No. 44, likewise, authorized PPSB conversion into Overseas Filipino Bank (OFB), which aims to efficiently deliver microfinance and micro-insurance products and services for overseas Filipinos.
“Overseas-based Filipinos, who contribute to the country’s foreign exchange income, currency stability, employment, and overall economic growth through their remittances should be given provision of priority support for their growing financial needs,” EO No. 44 underscored.
Subject to the clearance of the Bangko Sentral ng Pilipinas, Securities and Exchange Commission, Philippine Deposit Insurance Corporation, and the Philippine Competition Commission, the PPSB acquisition via transfer of shares directs the Philippine Postal Corporation, the parent company of (PPSB), and the Bureau of Treasury to move their respective shareholdings in PPSB to Land Bank at zero value.
But prior to the actual transfer of shares, the PPSB is directed to return to the National Treasury the balance amounting to P249.23-million from the P500-million previously released to fund the Project DRIVE (Dagdag Regular Income Via Entrepreneurship) Fund managed by the PPSB.
Further, the PPSB is ordered to expedite the transfer of all its assets, liabilities, records, systems, and other pertinent items to Land Bank.
“In order to strengthen the capital base of OFB and enable the same to attain its primary agenda of servicing the various financial and banking needs of overseas Filipinos, the LBP is hereby directed to infuse the necessary capital of OFB,” EO No. 44 stated.
As for the management of OFB, Land Bank will implement a reorganizational plan, which may cause the detail or assignment of LBP employees to the OFB as may be necessary.
The affairs and businesses of OFB will be managed by a 9-member Board of Directors composed of the LBP President as OFB Chairperson; LBP-designated OFB President as Vice Chairperson; four LBP-designated directors or officers as members; and one representative each from the Department of Labor and Employment (DOLE), the Overseas Workers Welfare Administration (OWWA), and the private sector representing overseas Filipinos, as members.
“The members representing the DOLE, OWWA, and overseas Filipinos shall be appointed by the President,” the EO said.
For those PPSB employees who will be affected by the reorganization, an early retirement incentive plan awaits those who voluntarily retire or may be separated from the service. This is on top of the retirement or separation benefits due to them under existing laws.