OFW savings and loan
Most of the earnings of Overseas Filipino Workers (OFW) go to house-hold expenditures, including appliances, personal items, food, and movies. The money sent home ends-up purchasing items commonly from China.
Government must encourage Filipinos to increase their house-hold sector deposits and investments in micro-business. The creation of an OFW bank is one happy event beneficial to the new heroes of the country.
Over a decade ago, I pushed for an OFW Savings and Loans Association or cooperative. Government can be a strategic partner in such a laudable initiative as such organization can extend much- needed financial assistance and yearly dividends to members at a return higher rate than commercial banks. I recall a bank officer friend working in a R25-billion non-stock savings and loan association (NSSLA) paying, “The dividends we give for soldiers and policemen augment their household condition. These monies are not for business or profit but for paying the family electricity, water, gasoline and food.”
The story of Col. William Gonzales comes to mind. He opened a R1-million Bawat Miyembro Milyonaryo (BMM) as a lieutenant in 1999. Hard pressed, he shelled-out R1,088 a month. In February, 2014, he received his R1 million which helped in his children’s tuition fees. SPO2 Ricardo Alcantara succeeded in having four children graduate. All of them became successful in their fields because of his membership, which granted him affordable and easy availment terms, in comparison to current commercial rates. Calamity loans were also provided for members affected by Typhoon Yolanda.
These are examples of how cooperatives and S&Ls “create a positive impact” on the life of the ordinary Filipino. With the NSSLA a major force in the financial sector, industry insiders are curious why Bangko Sentral ng Pilipinas is constantly depressing capital investments and dividends, setting limits vs. marginalized members, e.g., veterans, widows etc. are some commercial banks “talking” to BSP? Senators Gregorio Honasan and Loren Legarda can go to town with this, given millions of members affected.