Overseas Filipino Bank

The Overseas Filipino Bank (OFBank) is the state-owned digital-only, branchless bank in the Philippines. Formerly known as the Philippine Postal Savings Bank (PPSB) or PostBank, it is the smallest of the Philippines' three state-owned banks (the others being Land Bank of the Philippines and Development Bank of the Philippines), and is the 16th largest thrift banks in terms of assets. It is tailor-made for the needs of the Overseas Filipinos (OFs), Overseas Filipino Worker (OFWs), and their families or beneficiaries. Since 2018, it has been a subsidiary of LANDBANK.

Overseas Filipino Bank
FormerlyPhilippine Postal Savings Bank, Inc
(1906-2018)
TypeState-owned
IndustryFinance and Insurance
FoundedManila, Philippines
(May 24, 1906 (1906-05-24))
HeadquartersManila, Philippines
Key people
Cecilia Borromeo, (Chairman)
Leila Martin, (Vice Chairman, President and CEO)
P-609.27 million PHP (2019)[1]
ParentLand Bank of the Philippines
Websitewww.overseasfilipinobank.gov.ph

History

Established as Philippine Postal Savings Bank in 1906, the bank was closed in 1976 as a result of competition with privately owned banks, but was reopened in 1994 pursuant to the provisions of Republic Act No. 7354, the charter of the Philippine Postal Corporation.[2] In 2013, the bank rebranded its operations as "Postbank".[3] Despite the legal affiliation, the PPSB is governed separately from PhilPost.

Conversion to Overseas Filipino Bank

On November 16, 2016, Land Bank of the Philippines announced plans to acquire Postbank and is targeted to be a lending bank for the Overseas Filipino Workers and their families.[4]

President Rodrigo Duterte issued Executive Order No. 44 in September 2017 which mandates the Philippine Postal Corporation and the Bureau of the Treasury their PostBank shares to LANDBANK at zero value. The edict also states that PostBank will be converted to the "Overseas Filipino Bank".[5]

The Monetary Board of the Bangko Sentral ng Pilipinas approved Land Bank's acquisition of PostBank in December 2017 while the Philippine Competition Commission authorized Land Bank to acquire PostBank on January 11, 2018.[5] The bank was inaugurated as the Overseas Filipino Bank at the Postbank Center by President Duterte on January 17, 2018[6]

On June 29, 2020, Land Bank of the Philippines virtually launched the Overseas Filipino Bank (OFBank) which aims to help Filipinos employed abroad to send money home faster. The virtual launch includes the presentation of OFBank’s new offerings such as digital accounts opening platform catering to Overseas Filipinos (OFs), Overseas Filipino Workers (OFWs), and their families or beneficiaries, as well as the improved website and official Facebook page. As it is a digital-only bank, OFWs and their beneficiaries can just submit all requirements online through OFBank's mobile app.[7]

OFBank is regulated by the Bangko Sentral ng Pilipinas (BSP).

See also

References
  1. "CoA PH". CoA PH. Retrieved 2021-02-02.
  2. Alfredo Rosario, "From the Sidelines: A Bright Future for the Postal Bank", The Manila Times, May 25, 2006  – via HighBeam Research (subscription required)
  3. "Postbank: Surviving the Changing Times", Manila Bulletin, December 17, 2013  – via Questia Online Library (subscription required)
  4. http://news.abs-cbn.com/business/11/16/16/land-bank-to-buy-postbank-convert-it-to-ofw-lender
  5. "Launch of OF Bank fulfills PRRD's campaign promise". Department of Finance (Philippines). 17 January 2018. Retrieved 18 January 2018.
  6. Gita, Ruth Abbey (18 January 2018). "Duterte inaugurates OFW Bank". SunStar Philippines. Retrieved 18 January 2018.
  7. Rivas, Ralf (June 29, 2020). "Gov't launches Overseas Filipino Bank". Rappler. Rappler. Retrieved June 29, 2020.

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