OFW Bank

Help wanted: A bank to protect modern-day heroes--OFWs

Now is the time to push for the creation of the OFW bank that will provide not only cheaper remittance rates for our kababayans working overseas but also serve their financial and investment needs.

Why now? Well, let’s consider these facts: OFW remittances for the first 10 months in 2010 reached US$ 15.5 billion and most of the remittances came from the US, Canada, Saudi Arabia, Japan, United Kingdom, UAE, Singapore, Italy, Germany and Norway.

Recognizing their vital role in propping up the country’s economy, these modern-day heroes—our millions of workers deployed overseas—should be given their rightful honour as the government takes the initiative to set up these workers’ “own bank”

This money remittance business is a billion-dollar enterprise. Why not let these OFWs have a bank that will genuinely serve their interest, a bank whose operational profits should redound to OFWs’ and their families’ benefits—a bank that they can call their own.

Just imagine how much all these privately-run remittance outlets and other banks have been raking up billion of profits all these years.

One of the problems confronting these overseas workers is where and how to invest their hard-earned money. At present, most of these OFWs have been investing into real estate—buying condos, houses and lots for their families.

But, do we have banks and other financial institutions which we could expect to really think about the OFWs’ interests first, thereby, giving them not only the right advice on the kind of businesses they can engage in, but most importantly, extending to them low-interest loans and capital if they so decide to get into small-and-medium businesses.

So, the main issue here is looking for some banks that would truly cater to the needs of these overseas workers and protect their interests too—that kind of banks that would be their real partners in improving their condition in life.

The recent proposal of Vice President Jejomar Binay for the setting up of the OFW bank could be the timely solution to OFWs’ concerns on their need to have their own bank.

Binay, who is also the presidential adviser on overseas Filipino workers, said the bank will “ provide competitive and cheaper remittance rates”. He added that the OFW bank “will provide alternative yet viable economic financial and remittance institution for our kababayans at the local and international levels”

Fully cognizant of the plight of these overseas workers, Binay said the proposed establishment of the OFW bank is in response to their clamour for the setting up of a financial institution as they have become victims of exorbitant remittance rates charged by financial intermediaries and money brokers.

In a letter of President Aquino, Binay said “ The bank will provide fair competition towards reduction/lowering of remittance/transaction costs and provide productive outlet for our overseas Filipinos’ savings as bank investors and shareholders”.

Binay has suggested that the OFW bank could initially be funded and underwritten by government financial institutions and it will then be sold to and controlled by OFW investors and stockholders after a period of time.

So the proposal for the establishment of the OFW bank is now on the table—what’s needed now is for all the million of kababayan workers abroad and their respective organizations to work hand in hand in bringing into fruition this long dream of having their “ own bank”.

Help wanted: A bank to protect modern-day heroes--OFWs

Now is the time to push for the creation of the OFW bank that will provide not only cheaper remittance rates for our kababayans working overseas but also serve their financial and investment needs.

Why now? Well, let’s consider these facts: OFW remittances for the first 10 months in 2010 reached US$ 15.5 billion and most of the remittances came from the US, Canada, Saudi Arabia, Japan, United Kingdom, UAE, Singapore, Italy, Germany and Norway.

Recognizing their vital role in propping up the country’s economy, these modern-day heroes—our millions of workers deployed overseas—should be given their rightful honour as the government takes the initiative to set up these workers’ “own bank”

This money remittance business is a billion-dollar enterprise. Why not let these OFWs have a bank that will genuinely serve their interest, a bank whose operational profits should redound to OFWs’ and their families’ benefits—a bank that they can call their own.

Just imagine how much all these privately-run remittance outlets and other banks have been raking up billion of profits all these years.

One of the problems confronting these overseas workers is where and how to invest their hard-earned money. At present, most of these OFWs have been investing into real estate—buying condos, houses and lots for their families.

But, do we have banks and other financial institutions which we could expect to really think about the OFWs’ interests first, thereby, giving them not only the right advice on the kind of businesses they can engage in, but most importantly, extending to them low-interest loans and capital if they so decide to get into small-and-medium businesses.

So, the main issue here is looking for some banks that would truly cater to the needs of these overseas workers and protect their interests too—that kind of banks that would be their real partners in improving their condition in life.

The recent proposal of Vice President Jejomar Binay for the setting up of the OFW bank could be the timely solution to OFWs’ concerns on their need to have their own bank.

Binay, who is also the presidential adviser on overseas Filipino workers, said the bank will “ provide competitive and cheaper remittance rates”. He added that the OFW bank “will provide alternative yet viable economic financial and remittance institution for our kababayans at the local and international levels”

Fully cognizant of the plight of these overseas workers, Binay said the proposed establishment of the OFW bank is in response to their clamour for the setting up of a financial institution as they have become victims of exorbitant remittance rates charged by financial intermediaries and money brokers.

In a letter of President Aquino, Binay said “ The bank will provide fair competition towards reduction/lowering of remittance/transaction costs and provide productive outlet for our overseas Filipinos’ savings as bank investors and shareholders”.

Binay has suggested that the OFW bank could initially be funded and underwritten by government financial institutions and it will then be sold to and controlled by OFW investors and stockholders after a period of time.

So the proposal for the establishment of the OFW bank is now on the table—what’s needed now is for all the million of kababayan workers abroad and their respective organizations to work hand in hand in bringing into fruition this long dream of having their “ own bank”.