MANILA, Philippines — The Philippine Competition Commission has approved the acquisition of Postal Savings Bank, Inc. by Landbank of the Philippines for the eventual establishment of a financial institution for overseas Filipino workers that President Rodrigo Duterte promised.
In a decision dated January 11, the PCC said it allowed the Landbank’s acquisition of Postal Savings Bank after the antitrust body found that loss of competition is unlikely to happen under such a transaction.
“Sufficient competitive constraints on the parties remain from other market participants, post-acquisition,” the competition watchdog said.
“The Commission hereby resolves that it will take no further action with respect to the transaction,” it added.
In 2016, Duterte announced a plan to convert Postal Savings Bank, which was established to develop the rural financial sector, into a financial institution for Filipino migrant workers.
The president last September issued Executive Order No. 44 directing the creation of a special bank for OFWs.
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The order cited the need to provide the financial needs of overseas-based Filipinos who contribute to the country’s foreign exchange income, currency stability, employment and overall economic growth through their remittances.
In the EO, Duterte also ordered Landbank to infuse capital to the OFW bank to enable it to provide the financial and banking needs of overseas Filipinos.