The OFW Bank will have overseas Filipino workers as co-owners with up to P1 billion worth of shares of the bank to be offered to them.
“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 the Landbank. Another P1 billion will be open for subscription to OFWs who can acquire them by buying shares in the bank,” Malaya quoted Landbank president Alex Buenaventura as saying.
Buenaventura made the statement after Landbank completed the valuation of Philippine Postal Savings Bank (PostalBank), which will be converted into the OFW Bank.
The bank has a value of negative P580 million (Dh42.12 million), Business Mirror reports.
Department of Finance Secretary Carlos Dominguez III said this is so because PostalBank has been struggling for many years.
National Treasurer Rosalia de Leon said the government will now work to secure regulators’ approval and board valuation.
Dominguez said the OFW Bank will serve the OFWs like facilitating remittances.
Credit: TFT
Why don’t the government create a new bank, that is without negative value, for the Overseas Filipinos? This could be named as the ‘Pioneer Bank of Overseas Filipinos.’
Unbelievable. Dumping debt upon people who have no experience in banking. Better let this one go broke, and set up a cooperative bank without debt. The Philippines still does not have a bank like BancoSol in Bolivia (http://www.gabv.org/stories/sewing-and-self-sufficiency-in-bolivia) or BRAC bank in Bangladesh (http://www.gabv.org/stories/turning-coconut-fibre-into-carpet-threads-bangladesh), which are aimed at improving society instead of just shareholder profits.