Introduce 
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Undeniably, the contribution of Filipino overseas workers in the country's thrust 
for economic recoveryhas proven to be both vital and indispensable. Since the 1970s, 
labor export had been regarded by the national government as a means to address the 
nation's twin problems of unemployment and chronic balance of payment deficits. 
In 
fact, not only have jobs in the country been made available to those that remained a 
part of the domestic labor force, but more importantly, the remittances of Filipino 
overseas workers have become the country's single biggest source of foreign 
exchange. 
Hailed as modern day heroes, Filipino overseas workers have been considered 
as one of the major forces in the labor front today. Considering their number, which is 
estimated at close to I 
.5 million, excluding workers who have acquired immigrant status 
in their host countries, they have greatly influenced government policies geared towards 
promoting and protecting their rights, welfare and interests. 
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These notwithstanding, however, the collective potentials of Filipino overseas 
workers have yet to be fully harnessed and utilized. While laudable, the programs of the 
government have been focused mainly in the areas providing welfare protection to 
Filipino overseas workers and encouraging them to continually remit their foreign 
exchange earnings through the grant of certain incentives. In the area of investment, the 
government has only the establishment of the Overseas Workers Investment Fund to 
offer for the overseas workers a to venture upon. 
To say the least, this pill seeks to further enhance the investment potentials of 
overseas workers while at the same time aims to address their various financial needs 
and concerns. It provides for the establishment of a banking institution for Filipino 
overseas workers, to be known as the Philippine Overseas Workers Bank, to augment 
their income-generation capabilities as investors thereof. Added to this, it enjoins the 
government to provide necessary financial assistance that will tremendously sustain the 
viability of .the proposed Bank. 
As previously mentioned, there are reportedly about I 
.5 million Filipino overseas 
workers in more than 120 countries. The Middle East accounts for half a million of them. 
Western Europe has about 400,000 Filipino workers and the Asia Pacific Region 
is host to more than 600,000, including some 300,000, mostly refugees, in Sabah. With 
their huge number, a minimum investment of One thousand pesos (P1,OOO.OO) from 
each of them with easy terms of payment will certainly generate a substantial amount of 
capitalization. This capital infusion, to say the least, would be a great boost to the 
country's sorry economic plight. 
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It is-&bout time that the overseas workers be provided with a bank that they can 
call their own; effectively run and managed by people within their ranks; and which is 
expected to be operated for their greater good and benefit. This augers well for our so- 
called modern day heroes, as many are won’t to say, which will surely give them the 
added aspiration to work even harder in the foreign countries they now consider as the 
places of their “bread and honey.” But more importantly, it is a fitting recognition of their 
contribution in the long and arduous task at nation building. 
In this light, the passage of this bill is fervently prayed. 
Senator 
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Be if enacted by the Senafe and House of Representatives the Philippines in 
Congress assembled 
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SECTION 1. 
. - There is hereby created a Bank to be 
known as "Philippine Overseas Workers Bank" herein referred to as the "Bank". 
SECTION 2. 
The Banks principal office and play of business shall be in the National Capital Region, 
also known-as MetrwManila. It may open and maintain other branches, agencies and 
other offices at such places in the Philippines or abroad as its Board of Directors may 
deem advisable, with prior approval of the Monetary Board of the Banko Sentral ng 
Pilipinas. 
SECTION 3. 
. - The Bank shall be a 
corporate body and shall have the following powers and purposes: 
a. 
To grant loans and other financial assistance preferably to Filipino 
overseas workers, their spouses, or compulsory heirs, for the development of 
agriculture and small and medium scale commercial and industrial enterprises; 
To grant loans and other financial assistance to Filipino workers applying 
or re-applying for overseas employment to defray the payment of placement fees and 
other expenses thereof; 
To enter into agreements or contracts for such services and aid, as may 
be needed for the proper, efficient and stable administration of the 
To accept and administer trust and to carry on a general trust business; 
To acquire property, real or personal, which may be necessary or 
To acquire, receive or hold, by way of purchase or otherwise, public or 
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b. 
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expedient for the proper conduct of its operations; 
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private property for the purpose of undertaking housing projects preferably for the 
benefit of Filipino overseas workers, their spouses or compulsory heirs; 
To receive deposits and accept property, real or personal, as collateral or 
security; and 
To adopt, amend or change its by-laws; to adopt, alter and use a seal; to 
sue or he sued; and to exercise the general powers of a corporation as provided in 
Batas Pambansa No. 68, otherwise known as the "Corporation Code of the Philippines", 
and the powers of a bank of its category under the General Banking Act. 
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SECTION 4. ~
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. - For purposes of this Act, 
the overseas workers referred to herein shall include any person or persons who have 
served or serving employees or workers outside the as Philippines the under valid 
employment contracts involving rendering of services in a foreign country, such as 
skilled and unskilled Laborers, office factory or household workers or professional 
employees, which shall include seamen and or 
workers on board vessels plying 
international employees or waters, name hires, and other similar workers. 
ufhorized ~
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sfoc - The capital stock 6the bank shall be 
Two billion pesos (P2,000,000,000.00) divided into Two million (2,000,000) shares with 
a par value of thousand. pesos (P1,OOO.OO) per one Fifty one percent share (51 %) of the 
total shares provided herein, or One billion one hundred million (I 
,100,000,000) shall be 
common shares, while or the remaining forty nine percent (49%) or Nine hundred million 
(900,000,000) shares shall preferred. 
The government of the Philippines of the Republic government shall, behalf of 
he overseas contract,_fully workers, fully subscribed total common shares of bank. The 
amount necessary for the government's subscription shall be advanced the Overseas 
Workers Welfare Administration (OWIA): Provided, That the National Government 
shall, within the period of three ( 3 ) years, return to OWWA the amount hereinbefore 
provided further, That the OVWA That shall hold and represent the shares 
corresponding to the amount it has advanced until it been fully reimbursed the sale of 
the stocks subscribed by the National Government in favor of overseas contract 
workers. 
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SECTION 6. 
ts. - In the exercise' of its 
lending authority, the Bank shall give preference and priority to loan for agricultural and 
small and-medium wale commercial industrial enterprises, particularly for overseas 
workers, their spouses or compulsory heirs. 
Unless otherwise provided in this Act, loans and other credit accommodation 
granted by the Bank shall be subject to the single appropriate applicable loan limits to 


any single borrower as provided under Republic Act No. 331, as amended, otherwise 
known as @-e General-Banking Act. 
The authority of the Bank to invest in equities of allied undertakings, financial, or 
non-financial; as well as in non-allied undertakings, shall be governed by the provisions 
of Republic Act No. 337, as amended. 
SECTION 7. 
iems. - Within first 
three (3) years from the organization of the Bank, its affairs and business shall be 
directed and its properties managed and preserved and its corporate exercised, unless 
otherwise provided in this Act, by a Board of Directors consisting (I 
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)eleven members, 
composed of the Secretary of Labor of employment as ex-officio Chairman,’ and the 
respective Chairmen of the Senate and House of Representatives Committees on 
Labor, theAdministia3ors of Philippine Overseas Employment Administration (POEA) 
and the Overseas Workers Welfare ( O W A ) ,  as ex-officio Members. The remaining six 
(6) members shall be selected from the officers and members of the different overseas 
workers associations and be appointed by of the President of the Republic Philippines: 
Provided, That at least one (I) 
member of the Board shall be ordinary overseas worker: 
Further, That at least on (I) 
member each shall come from Visayas and Mindanao. 
Thereafter, the Members of 
the Board of Directors shall be elected in 
accordance with the succeeding Section. 
SECTION 8. €/ection and 
of Directors. 
- Annually on the first Tuesday in March after the transition period of three (3) 
mentioned in this Act, the stockholders shall meet to the members to elect the member 
of the Board of Directors for the current year. Each stockholder or proxy will be entitled 
to as many votes as he may have shares of stock registered in his name held by him 
one (I) 
week prior to the date of the election multiplied by the number of directors to be 
elected. InJhe election the members of the Board, stockholders shall have the right of 
cumulative voting as recognized by law. 
No person shall be elected director of the Bank unless he is a natural-born citizen 
of the Philippines, not less than thirty five (35) years of age, of good moral character 
and has attained proficiency, has attained proficiency, expertise and recognized 
competence in one (1) or more of the following: overseas employment promotions and 
recruitment, banking, finance, economics, or business management; Provided, That no 
director, officer or employee of any other bank shall be eligible as member of Directors: 
Provided, further, That no less than six ( 6) of the members thereof are overseas 
workers , 
Unless otherwise set by the Board, members of the Board, members of the 
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Board shall receive a per diem allowance of One thousand pesos (P1,OOO.OO) for every 
meeting of the Board actually attended by them :Provided, finally, That the total amount 
of per diems for every single month shall not exceed the sum of Six thousand pesos 
(P6,OOO. 00). 
The Board of Directors shall by a majority of all its member, elect its Chairman, 
Vice-chairman and other officers. Pending the election of its Chairman, the President of 
the Bank shall preside aver the meetings of the Board of Directors. 
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- The Board of Directors shall 
have the following duties, powers and authority: 
a) To formulate policies necessary to carry out effectively the provisions of its 
Act; 
b) To adopt, amend or change the by-laws as well as such rules and regulation 
as may be necessary for the effective operation of the Bank, in conformity with this Act 
and existing laws; 
c) To-prescribe such terms and conditions to govern the granting of loans credits, 
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consistent with the provisions of this Act; 
d) To adopt annual budget for the effective operation and administration of the 
Bank; 
e) To create, establish and operate a “Self-insurance System” in order to offset 
possible damage or loss of cash in-transit that the Bank may suffer which may arise, 
among others, from irregular transfers and similar instruments, or losses arising from 
other forms of frauds; 
f )  To compromise or release, in whole or in part, any claim, liability or demand for 
or against the Bank regardless of the amount involved, under such terms and the 
conditions as it may impose to protect the interest of Bank; 
g) To determine the procedure and requirements for the acquisition of properties 
h) To dispose of properties of the Bank, whether used in the conduct of its 
business or acquired as a result of its banking operations, by public bidding its 
negotiations;- 
i) To provide for the appointment and removal, as well as fix reasonable 
compensation, its personnel in accordance with existing laws; 
j) To create and establish a Provident Fund for the benefit of its officers or 
employees under such term and condition as the Board of Directors may fix; and 
k) To pe~orm such other functions as may be to necessary to achieve the 
objectives of this Act. 
necessary for the business of Bank; 
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The Board shall meet as frequently as ndcessary and the presence of five (5) 
members shall constitute a quorum. 
SECTION 10, 
ank. - T e Chief Executive Officer of the Bank 
shall be the President who shall elected by he Board of Directors from among 
themselves. No person shall be elected Presiden of the unless he at least (40) years of 
age, of good moral character and reputation, 
ith at least ten (10 years previous 
experience in banking, has a reputed proficiency, xpertise and recognized competence 
in banking or financial management, and must vave had experience as an overseas 
worker. 
Thepresident-6f the Bank shall, among ther powers and duties, execute and 
administer the policies, measures, orders and r solutions approved by the Board of 
Directors, and direct and supervise the operations and administration of the Bank. 
Particularly, he shall the power and duty; 
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a) 
To execute all contracts and to enter into all authorized transactions in 
b) 
To exercise, as Chief Executive Offi er, the power supervision and control 
over decisions or actions subordinates officer and all other powers that may be 
granted by the Board; 
c) 
To recommend to the Board the appointment, promotion or removal of all 
d) 
To appoint, promote or remove em i 
loyees and officers below the rank of 
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behalf of the bank; 
officers oflhe Bank with the rank of at least Vice- resident; 
Vice-president; 
e) 
To transfer, reassign officer and personnel of the Bank in the interest of 
the service; 
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To report periodically to the Board of Directors the operations of the Bank; 
and 
g) 
To delegate any of his powers, duties or functions any officials of the 
Bank, with the approval of the Board of Directors. 
SECTION 11. Other QH.cers an € ~ ~ / ~ ~ @ @ s ~  
- The Board of Directors provide 
for an organization and staff officers and employees of the Bank and upon 
recommendation of the President of the Bank, fix their renumeration other emoluments 
in accordance with existing laws. 
No officer or employee of the Bank subject Civil Service shall be dismissed or 
suspended except prgvided by law. 
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SECTION 12. 6 
- The shall have its own Legal 
Department the head of which shall be appointed by the Board of Directors of the Bank 


upon the recommendation of the President of the Bank. 
The Bank may, subject to court approval, deputize any of its legal staff to act as 
Special Sheriff in the enforcement of court write and processes in cases involving the 
Bank. 
SECTION 13. 
r. - The Commission on Audit shall be ex-officio 
auditor of the Bank and shall designate a representative to the Bank. 
SECTION 14. ~ x a ~ i ~ a  
. - The Bank shall be subject to 
supervision and examination by appropriate the department of the Bangko Sentral nq 
Pilipinas. 
SECTION 15, ./ lnh 
mber with Personal 
. - Whenever any member attending a meeting of the Board of Directors has a 
personal interest, directly or indirectly in any given matter pending before the Board, 
said member shall not participate in the discussion or resolution of the matter and must 
retire 
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from the meeting duriqg the deliberation thereon. 
SECTION 16. ~
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as required by law, or upon order of a court of competent jurisdiction, or express order 
of the President of the Philippines, or written permission of the client, no officer or 
employee of the Bank shall reveal to, nor allow to be examined, inquired or looked into 
by any third person72owernment official, bureau or office, any information relative to 
details on individual accounts or specific banking transaction: Provided, That in respect 
to deposit of whatever nature, the provisions of any existing laws shall apply. 
This provision shall not apply to the exchange of confiqential credit information 
among government financial institutions or among banks, in accordance with 
established banking practices or as may be allowed by law. 
e§. - NO 
SECTION 17. 
an 
Directors, officer or employee of the Bank or any corporation, partnership or.cqmpany 
wherein any member of the Board of Directors, officer or employee, and/or their 
respective relatives within the second degree of consanguinity or affinity, is a directors, 
officer or controlling shareholder, shall either directly or indirectly, for himself or as 
representative or agent of others, borrow any of the deposits of funds from the Bank, 
nor shall he become a guarantor, endorser or surety for loans from the Bank to others, 
or in any manner be an obligator for money borrowed from the Bank or loaned by it: 


Provided, this prohibition 
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directors,Tfficers and employee shall not be include in the form of fringe benefits 
granted in accordance with rules and regulations as may be prescribed by the Monetary 
Board the Bangko Sentral ng Pilipinas. 
The Bank shall not grant, directly or indirectly, any loans, or credit 
accommodations to the head or any officer personnel directly exercising supervisory or 
regulatory authority over the activities of the Bank such as those of the Banqko Sentral 
ng Pilipinas or Commission on Audit. 
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SECTION 18. 
es. - Real and other 
properties acquired by the Bank in the collection of debts, receivables or by way of 
foreclosure or other means shall be sold or otherwise disposed of in accordance with 
the policies and guidelines by the Board of Directors within three (3) years after the date 
of their acquisition. 
- Within one (1) year from the registration of the 
foreclosure or sale real property, the mortgagor shall have the right to redeem the 
property by paying the principal, interest, charges, commissions and all claims of 
whatever nature of Bank outstanding and due as of the date of the sale including all the 
cost and other expenses incurred by reason of the foreclosure sale and custody of the 
property, as well as charges and accrued interests. 
The Bank may take possession of the foreclosed property during the redemption 
period. When the Bank takes possession during such period, it shall be entitled to the 
fruits of the property with no obligation to account for the, them the same being 
considered compensation for the interest that would otherwise accrue on the account. 
Neither the Bank be _obliged 
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to post a bond for the purpose of such possession. 
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SECTION 20. 
= - The provisions of 
the existing laws to the contrary notwithstanding, the Bank shall act as official 
government depository with authority to maintain government, particularly with respect 
to fund intended for or due to overseas workers, subject to rules and regulations as the 
Monetary Board of the Bangko Sentral ng Pilipinas may prescribe. 
SECTION 21. Tax 
. - The 8ank shall be exempted from 
the payment of all kinds of taxes and duties imposed by the Government, or any 
subdivision, agency or instrumentality thereof, on any its income, real or personal 
property acquisitions, or importation of equipment, machinery and other items be 


needed in its operations, within a period of five (5) years from the date of the 
establishment of the Bank. 
SECTION 22. Term. - The legal existence under this Act shall be for a'period of 
fifty (50) years 
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from and after the date of the effectivity of this Act. 
SECTION 23. 
r. - This Act upon its 
effectivity, shall be deemed and accepted for all legal intents and purposes as the 
statutory articles of incorporation or charter of the Philippine Overseas Workers Bank. 
Pursuant thereto, the bank shall be deemed registered and duly authorized to do 
business and operate to as a commercial-Bank as of the date of effectivity of this Act. 
SECTION 24. By- Laws. - The By-Laws of the Bank for its organizational, 
functional, and operational government and procedures shall be adopted by the 
affirmative vote of The stockholders representing a majority of all the subscribed capital 
stock and entitled to vote, whether paid or unpaid, within one (I) 
month after the 
effectivity of this Act. The said By-Laws shall be subject certifications by the Monetary 
Board pursuant to the provisions of Republic Act No. 337as amended. 
SECTION 25. Penalfie . - Any director, officer, or employee of the Bank who 
violates or- knowing@- permits the violation and any person aiding or abetting any 
violations any of the provisions of this Act, $ball be punished by a fine to exceed Ten 
thousand pesos (P10,OOO.OO) or by not exceed of not more than five (5) years or both 
fine and imprisonment. 
SECTION 26. Separab 
Clause. - If any provision, or part of this Act or the 
application thereof to any person, association circumstances is held the other invalid, 
the other pertinent application to such person, association or circumstances shall not be 
affected thereby. 
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SECTION 27;--R 
, - All other laws, decrees, executive orders, 
proclamation, rule and regulations or parts thereof inconsistent with any of the 
provisions of this Act are hereby repealed or modified accordingly. 
SECTION 28. 
- This Act shall take effect fifteen (15) days from its 
publication Official Gazette or in a newspaper of general circulation. 
Approved , 
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