Don't hold your breath but there is going to be a new big player in the international money transfer business.
As announced earlier, Land Bank of the Philippines will acquire the Philippine Postal Savings Bank or Postalbank. Land Bank will take over Postalbank at no cost and it plans to convert the thrift bank into an international money transfer business. This was announced by Land Bank president Alex V. Buenaventura.
The Postal Bank was a losing proposition while it was allowed to operate, so it comes as no surprise that Land Bank is going to acquire it at zero value. When it closed, Postalbank was valued at negative P478 to P480 million.
Although Land Bank is going to acquire Postalbank at zero value, Land Bank will be forced to infuse capital into Postalbank to cover the negative amount. Land Bank is lokking at infusing about One billion Pesos into this acquisition.
At the moment, the buy-out will have to go through the Governance Commission for Government-Owned or Controlled Corporations before it is approved by the BangkoSentral's Monetary Board. From here the takeover deal will go to the office of President Duterte for final approval. When the take-over is fully completed, Postalbank will be renamed as Overseas Filipino Bank and will function effectively as the remittance marketing arm of Land Bank.