BSP okays conversion of Postal Bank to OFW Bank

The Bangko Sentral ng Pilipinas (BSP) on Thursday approved the conversion of the Philippine Postal Bank into a Postal OFW Bank, which will accept remittances of overseas Filipino workers. “Based on our policy, there are no obstacles for the LandBank, Development Bank of the Philippines, and others who wish to invest like the Overseas Workers Welfare Administration," BSP deputy governor Diwa Gunigundo said. Gunigundo said DBP and LBP are both universal banks that can invest up to 100 percent in the Postal OFW Bank. The allowed capital for a postal savings bank is up to P1 billion. “Kung kinakailangang itaas, babaguhin lang ang articles nila with the Securities and Exchange Commission," Gunigundo said. “Ang OWWA naman, kayang-kaya niya na itulak ang P1 billion. Pero gusto rin naman ng Landbank at DBP at mabuti na rin dahil meron silang professional management, mabuti na itong bagong bangkong ito, ma-combine yung management ng tatlong bangko," President Arroyo said. Arroyo said the creation of the Postal OFW bank will reduce the remittance fees of the OFWs. She said the government will try to capture 20 percent of remittances that do not pass through the banking system. Rolando Macasaet, president and chief executive officer of the Philippine Postal Bank, said the mechanism will encourage the families of OFWs to opt to receive their money in US dollars that could go into the Philippine economy. Gunigundo said the BSP estimates remittances to reach P12 billion this year, or 11 percent of the gross domestic product, up from last year’s P10.7 billion. He said remittances in the first quarter of this year have reached $2.8 billion. - GMANews.TV