· Pres. Rodrigo R. Duterte, in one of his campaign for the Presidential Elections in 2016 said, that he is eyeing setting up a bank where OFWs can send and receive their remittances – facilities that are already existing
· In his campaign during his visit to the Filipinos based in Saudi Arabia (accounts for 40% of all overseas Filipino workers) he said the OFW Bank will be established through the LANDBANK’s acquisition of the Postbank, which will be converted into a LANDBANK subsidiary that will be owned 30 percent by OFWs.
· On 05 December 2016, the Office of the President of the Philippines has officially sent a copy of the Cabinet Action / Decision of its directive for the LANDBANK to initiate the acquisition of the Postbank as a subsidiary bank and eventually a bank for all workers. Said Cabinet action / decision was signed by Secretary of the Cabinet Leoncio B. Evasco Jr., copy furnished the then Chairperson of Postbank.
· On September 28, 2017 President Rodrigo R. Duterte issued Executive Order No. 44 approving the acquisition of the Postbank by the LANDBANK. The Postbank was converted into the Overseas Filipino Bank (OFBANKank), a wholly-owned subsidiary of LANDBANK.
· The Executive Order embodies six (6) major sections, as follows:
Section 1. Acquisition of Postbank by LANDBANK and Conversion of Postbank into an Overseas Filipino Bank (OFBank). 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 Postbank by LANDBANK through transfer of shares and its subsequent conversion into an Overseas Filipino bank (OFBank) is hereby approved, in accordance with existing laws, rules and regulations.
Section 2. Transfer of Shares of PPC and the Bureau of the Treasury. The PPC and the Bureau of the Treasury are hereby directed to transfer all their respective shares in Postbank to LANDBANK at zero value. Relative thereto, the Postbank shall cause the expeditious transfer of all assets, liabilities, records, systems and other appurtenant items to LANDBANK.
Section 3. Additional Capitalization for the OFBank. In order to strengthen the capital based of OFBank and enable the same to attain its primary agenda of servicing the various financial and banking needs of overseas Filipinos, the LANDBANK is hereby directed to infuse the necessary capital to OFBank.
Section 4. Reorganization. The LANDBANK shall implement a reorganization plan for the OFBank and cause the detail or secondment of LANDBANK employees as may be necessary.
The affairs and business of the OFBank shall be directed, and its property managed and preserved, by a Board of Directors consisting of nine (9) members.
Section 5. Early Retirement Incentive Plan. All Postbank officers and employees who voluntarily elect to be retired or may be separated from the service shall be granted retirement incentive, in addition to retirement or separation benefits under existing laws.
Section 6. Return of the Project Dagdag Regular Income via Entrepreneurship (DRIVE) Fund. Prior to the actual transfer of shares, the Postbank is hereby directed to return to the National Treasury the balance amounting to P249.23 million from the previously released P500 million to fund the Project DRIVE Fund.
· The OFBank was inaugurated on 18 January 2018 led by President Rodrigo R. Duterte with LANDBANK President Alex V. Buenaventura and OFBank President Renato G. Eje. The OFBank logo unveiling was witnessed by DOLE Secretary Silvestre H. Bello III, DFA Secretary Alan Peter Cayetano, Office of the President Executive Secretary Salvador Medialdea and DOF Secretary Carlos G. Dominguez