Land Bank To Acquire Philippine Postal Bank, Convert To OFW Lender
Land Bank of the Philippines will acquire Philippine Postal Savings Bank and realize the promise of Philippine President Rodrigo Duterte to establish an OFW bank.
This was disclosed by Finance Secretary Carlos Dominguez.
Postbank’s acquisition from the Philippine Postal Corp. will formally make it a wholly-owned subsidiary of Land Bank, the country’s fourth largest lender in terms of assets.
“They have to beef up the bank. It’s like giving your child some money, but it’s still yourself,” Dominguez said, referring to Postbank.
Postbank is best positioned to cater to overseas Filipinos because of its ties with he postal service, he said.
Central Bank data showed the thrift bank’s asset standing at P12.07 billion as of March this year. The proposal to absorb the operations of Postbank came after the Governance Commission on GOCCs abandoned a plan by the previous administration to merge the Land Bank with another state-run lender, the Development Bank of the Philippines.