Land Bank of the Philippines (LBP) will open OFW Bank in September 2017. The OFW Bank will be the new Philippine Postal Savings Bank (Postal Bank). Read on to learn more about it.

3 Important Things To Know About Land Bank's OFW Bank:

 

1. The Postal Bank will turn into a Land Bank subsidiary.

The OFW Bank will be  30 percent owned by Overseas Filipino Workers (OFWs). The Department of Finance (DOF) noted that the move for the acquisition is in line with President Rodrigo Duterte's promise to Filipino migrant workers to have a bank dedicated to the needs of OFWs. 

“The acquisition of the Postal Bank will be completed by the third quarter of 2017, after all required procedures are completed and approvals are secured. Landbank has sufficient resources to complete this transaction,” DOF Secretary and LBP Chairman of the Board Carlos Dominguez III said.

2. It will take eight months to complete conversion from Postal Bank to OFW Bank.

“The OFW Bank will be a listed company with an authorized capital of P3 billion and a subscribed capital of P2 billion, of which P1 billion is paid-up by Landbank. Another P1 billion will be open for subscription to OFWs who can acquire them by buying shares in the bank,”  LBP President Alex Buenaventura said.

The process of converting the Postal Bank into a Land Bank subsidiary starts in January 2017. Included in the process is the drawing up of a purchase agreement and amendment of articles and bylaws to formalize  LBP's acquisition of the Postal Bank.

LBP will also have to secure necessary approvals from Bangko Sentral ng Pilipinas (BSP), Governance Commission for Government-Owned and -Controlled Corporations (GOCCs), Philippine Competition Commission (PCC) and Securities and Exchange Commission (SEC) before operations.

3. LBP representative office will open first in Saudi Arabia before OFW Bank.

LBP will open first the Saudi unit in Riyadh, near the Philippine labor office to accommodate 800,000 OFWs based in Riyadh. The unit will offer financial education and investment counseling services to OFWs.

Meanwhile, LBP is the fourth biggest bank in the country in terms of assets with P1.29 trillion and total capital of P90.9 billion as of September.

What do you think of Land Bank opening OFW Bank in 2017? Let us know in the comments section below.