Reason Why Pres. Duterte Approved OFBank’s Exemption
DUTERTE – President Rodrigo Roa Duterte gave his approval on the exemption of the Overseas Filipino Bank (OFBank) from remitting its 2016 earnings to the government.
There are several banks in the Philippines, Some are owned by private companies and business associations while others are under the government. The latter includes banks like the Landbank of the Philippines and the Overseas Filipino Bank or more commonly called as OFBank.
In the case of the government banks, there is a law that mandates government banks and corporations to remit a part of their net annual earnings. The minimum is 50% and it can be done as cash, as property dividends, or as stocks.
Meanwhile, the amount that the government bank or corporation is mandated to remit to the national government is flexible. Based on a report on ABS-CBN News, changes or adjustments to the amount can be made by the president upon the recommendation of the secretary of the Department of Finance.
Recently, President Rodrigo Roa Duterte approved the exemption of the Overseas Filipino Bank (OFBank) in remitting its 2016 earnings to the government. Supposedly, it is set to remit 50% of its net earnings in a year.
Pres. Duterte signed the Executive Order 146 exempting OFBank. According to Finance Secretary Carlos Dominguez III, the suggestion to exempt OFBank from remiting half of its net earnings in 2016 is in the pursuit to support the bank’s capital position and permit it to comply with the regulations of the Central Bank of the Philippines.
Furthermore, the exemption is also in line with supporting OFBank’s short-term and long-term plans and programs for the Filipinos who are working abroad. Dominguez stressed that it is “in the interest of national economy and general welfare”.
Based on the report, OFBank is offering services to overseas Filipino workers (OFWs) in 113 countries and territories as cited by Landbank of the Philippines. The OFWs covered by the services include those working in Singapore, Qatar, Hong Kong, United Arab Emirates (UAE), Bahrain, Malaysia, Taiwan, and Kuwait. Clients can avail the services online.
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