BSP chief: OFW Bank starts operations February

The operations of the Overseas Filipino Bank (OFB) which will target some 10 million Filipinos working overseas will likely start in February after policy-making Monetary Board (MB) approved the Land Bank of the Philippines’ (Landbank) recent acquisition of the thrift bank.

“I think they are targeting February (2018) taking into account the (assessment of the) Philippine Competition Commission (PCC),” Bangko Sentral ng Pilipinas (BSP) Governor Nestor Espenilla Jr. said.

President Duterte signed last Sept. 28 Executive Order (EO) 44, directing the Philippine Postal Corp (PhilPost) and the Bureau of the Treasury (BTr) to transfer their Postal Bank shares to Landbank at no cost.

Under the EO, Landbank was ordered to ensure the capitalization of Overseas Filipino Bank, which will be headed by Landbank’s chairperson.

PostalBank officials who will be affected by this transfer will be offered an early retirement incentive plan.

BSP Deputy Governor Chuchi Fonacier said although the MB has approved Landbank’s acquisition of PostalBank, the parties have yet to secure the approval by the PCC.

A PCC approval is needed because the acquisition amounts to more than P1 billion, she said.

Landbank sought its board’s approval for the proposed Overseas Filipino Bank’s P1 billion authorized capital, P700 million of which will be classified into common shares while the balance will be preferred shares.

Fonacier said the two parties have also submitted before the MB applications to set up a new bank on top of the application for acquisition. RIZA LOZADA