Philippine President Rodrigo Roa Duterte signed an executive order (EO) approving the acquisition of the Philippine Postal Savings Bank (PPSB), which the government planned to convert into a bank for overseas Filipino workers (OFWs).
Signed on September 28 but released to the press on Monday, October 9, EO 44 ordered the Philippine Postal Corporation and the Bureau of the Treasury to transfer their PSPB shares to the Landbank of the Philippines (LBP) at zero value.
According to the EO, PPSB will be converted into the “Overseas Filipino Bank” which is a “policy bank dedicated to provide financial products and services tailored to the requirement of overseas Filipinos” and will focus on delivering “quality and efficient foreign remittance services.”
The LBP was also ordered to infuse capital and implement a reorganization plan for the new bank.
The OFW bank will be headed by a Board of Directors consisting of the following members:
- LBP President as Chairperson
- LBP-designated OFW President as Vice Chairperson
- 4 LBP-designated directors or officers as members
- A member representing the Department of Labor and Employment (DOLE)
- A member representing the Overseas Workers Welfare Administration (OWWA)
- A private sector member representing overseas Filipinos
PPSB officers who might be affected by the acquisition were also offered an early retirement incentive plan.