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
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
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.