OFBANK.COM.PHA BILL seeking to provide the Overseas Filipino Bank (OFBank) with a charter has been filed at the House of Representatives.
Filed on Feb. 5, House Bill (HB) No. 11424 seeks to establish the OFBank as an independent and digital bank, allowing it to provide specific financial services for overseas Filipinos, such as low-cost remittance services. The proposed law also endows it with capital stock and strengthens its mandate as the Philippines’ primary bank for migrant workers.
“This measure… seeks to solidify OFBank’s status as an independent financial entity,” the bill’s explanatory note, which was authored by Party-list Rep. Ron P. Salo, stated.
“This ensures its long-term sustainability, autonomy in financial operations, and ability to offer a wider range of financial products tailored for overseas Filipinos,” he added.
OFBank is a wholly-owned and fully controlled subsidiary of the Land Bank of the Philippines, which acquired it after ex-President Rodrigo R. Duterte signed Executive Order No. 44 in September 2017.
OFBank is designated as the government’s official bank for overseas Filipinos, according to its citizen charter.
“The act aims to institutionalize a digital bank designed to facilitate cost-effective remittances, accessible credit facilities, and enhanced financial services,” the measure stated.
The bank is mandated to develop financial services for all overseas Filipinos while keeping the costs of its services and facilities “at the bare minimum.”
OFBank is also permitted to invest in bonds, debt securities, and other market notes, as well as to buy and sell in foreign exchanges.
The proposed charter also seeks OFBank to “present, market, sell and service microinsurance products.”
It is also authorized to grant loans, advances and other credit accommodations for the establishment, rehabilitation, expansion, or development of any agricultural, commercial or industrial enterprises, including public utilities, according to the measure.
The proposal also provides OFBank with a P10-billion authorized capital stock, divided into 100 million shares, priced at P100 per share. At least half of the capital stock should be subscribed by the National Government, with the remaining open for subscription by overseas Filipinos and their families.
OFBank’s board and stockholders are allowed to increase its authorized capital stock subject to the Philippine central bank’s regulations, according to the measure.
The bill also organizes its board of directors, which would consist of nine members all appointed by the Philippine president. Four of the board’s members should be independent directors composed of one representative each from the private sector, land-based and sea-based overseas Filipino workers, and overseas Filipinos. — Kenneth Christiane L. Basilio
