Land Bank to buy PostBank, transform it to an OFW lender
Nov 21, 2016
Land Bank of the Philippines will acquire Philippine Postal Savings Bank and then transform it into a lender for the overseas Filipino workers (OFWs).
Finance Secretary Carlos Dominguez said Postbank will become a wholly-owned subsidiary of Land Bank when they buy it ftom the Philippine Postal Corporation.
Turning Postbank into an OFW bank means being able to better deliver services to OFWs and their families.
Dominguez also said that Postbank is best positioned to cater to overseas Filipino workers because of its ties with the postal service.
While the Postbank only has 25 branches, it could tap PHlPost's more than 1,000 branches and couriers all over the country to help deliver OFW remittances. It is possible to allocate a space in every post office and have a teller to process transactions.
A previous plan of merging Land Bank with another state-run lender Development Bank of the Philippines was declined by the Governance Commission on government owned and controlled corporations (GOCCs), resulting to the proposal to absorb operations of Postbank.