Landbank’s acquisition of Postal Bank gets green light

PHILIPPINE Postal Savings Bank (PPSB) has been directed to transfer all its assets, liabilities, records, systems and other appurtenant items to the Land Bank of the Philippines (LBP), the first step in the government’s aim to set up a lender for overseas Filipinos.

Executive Order ( EO) 44, signed by Acting Executive Secretary Menardo I. Guevarra on Sept. 28 in behalf of President Rodrigo R. Duterte, approved Landbank’s acquisition of PPSB.

“Subject to the necessary approval and/or clearance of the Bangko Sentral ng Pilipinas, Securities and Exchange Commission, Philippine Deposit Insurance Corporation, and the Philippine Competition Commission, the acquisition of PPSB by LBP through transfer of shares and its subsequent conversion into an Overseas Filipino Bank (OFB) is hereby approved, in accordance with existing laws, rules and regulations,” the EO read.

“The PPC (Philippine Postal Corporation) and the Bureau of [the] Treasury are hereby directed to transfer all their respective shares in PPSB to LBP at zero value,” it added.

Following the acquisition, PPSB will be converted into an Overseas Filipino Bank (OFB), according to the issuance.

EO 44 said OFB will address “the need to establish a policy bank dedicated to provide financial products and services tailored to the requirements of overseas Filipinos, and focused on delivering quality and efficient foreign remittance services.”

The issuance also directed Landbank to infuse the necessary funds to OFB to strengthen its capital base “to attain its primary agenda of servicing the various financial and banking needs of overseas Filipinos.” •