Launch of Workers’ Bank in the pipeline next year

MANILA, Philippines - The government plans to launch by the second quarter of next year a financial institution for domestic and overseas Filipinos workers.

Under the plan, the government will convert the Philippine Postal Savings Bank Inc. into a subsidiary of state-run Land Bank of the Philippines.

“It will be called the Workers’ Bank. It could be for all workers and may even include LGUs,” Budget Secretary Benjamin Diokno told The STAR in a text message. “It could probably be established by second quarter of 2017,” he added.

Agriculture Secretary Emmanuel Piñol said the plan was approved by President Duterte, saying it was another campaign promise fulfilled by the President.

In his Facebook post, Piñol said the bank would be placed under Landbank “until such time OFWs and other Filipino workers have bought shares to own part of the bank.”

“As the Workers’ Bank grows, OFWs and other Filipino workers will be allowed to buy shares of the bank, thereby establishing the first bank which will be owned by the working class,” Piñol said.

Diokno said the initial budget for the bank would be discussed by economic managers in a meeting slated on Dec. 20 for next year’s macroeconomic assumptions.

“I’m almost sure that it would require BSP approval, although the requirements are much less stringent than having a stand alone bank,” Diokno said.

BSP Deputy Governor Nestor Espenilla Jr. said an application has not been filed, but assured the central bank is “ready to work with Landbank on their plans.”

According to central bank data, Landbank is country’s fourth biggest lender with assets amounting to P1.288 trillion as of June this year.

Postal Bank, meanwhile, was ranked 14th biggest thrift lender with assets reaching P12.117 billion during the same period.