MANILA - Land Bank of the Philippines will acquire Philippine Postal Savings Bank and transform it into a lender for overseas Filipino workers, Finance Secretary Carlos Dominguez said.
Postbank will become a wholly-owned subsidiary of Land Bank after the country's fourth largest lender in terms of assets buys it from the Philippine Postal Corp., Dominguez said, adding the transaction could take 11 months.
"They have to beef up the bank. It's like giving your child some money, but it's still yourself," Dominguez said, referring to Postbank.
Postbank is best positioned to cater to overseas Filipinos because of its ties with he postal service, he said.
The thrift bank's total assets stood at P12.07 billion as March this year, according to central bank data.
The proposal to absorb the operations of Postbank came after the Governance Commission on GOCCs abandoned a plan by the previous administration to merge the Land Bank with another state-run lender, the Development Bank of the Philippines.