MANILA, Philippines — The recent passage of Republic Act 11597 or the Philippine Veterans Bank Act would pave the way for the bank’s revitalization, according to a high-ranking Philippine Veterans Bank (PVB) official.
RA 11597, signed by President Duterte last Dec. 10 took effect on Jan. 21, repealing the bank’s old charter RA 3518 or An Act Creating the Philippine Veterans Bank, which in turn was amended by RA 7169 or An Act to Rehabilitate Philippine Veterans Bank.
PVB vice president Mike Villa-Real said with the new law, the bank could increase its capitalization and include post-World War II veterans as shareholders while maintaining priority for World War II veterans and their immediate heirs.
Villa-Real said that while the newly signed charter aims to align salient provisions with banking standards and norms, major changes to the PVB Charter would include the increase of capitalization from P100 million to P10 billion, allowing PVB to issue additional stocks, increase the number of the board of directors from 11 to 15 and move its head office from Manila to Makati.
“The most significant amendment in the new charter is how the bank defines ‘veterans’ which is closely tied to stock ownership. The old PVB charter defined ‘veterans’ as only those Filipinos who fought during World War II and thereafter recognized as ‘World War II Veterans.’ As such ownership of the bank was limited to them and their designated heirs. Under the amended charter, ‘veterans’ will now include post-World War II veterans, thereby allowing AFP retirees to be shareholders as well,” he said.
The new charter also highlights the provision that maintains PVB’s status as a government depository bank, enabling it to accept deposit from national government agencies, local government units and government corporations. By extension, this allows PVB to continue offering its products and services such as loans and cash management services to government clients.
“This is what makes PVB versatile – it is a private financial institution catering to private individuals and corporates but is also a government depository,” Villa-Real said.
PVB lauded the passage of RA 11597 as it would enable the bank to continue its mission and purpose of serving Filipino veterans and their families. In keeping with the original intent of the bank’s founders, PVB will continue to allocate 20 percent of its annual net income for the benefit of Filipino veterans and their families through programs and endeavors beneficial to shareholders.
PVB chairman and CEO Roberto de Ocampo thanked Duterte for signing the “Philippine Veterans Bank Act” into law which, he said, demonstrated the President’s strong support for the veterans community.
The new PVB Charter is the consolidation of Senate Bill 2368, authored by Sen. Grace Poe, Senate Majority Floor Leader Juan Miguel Zubiri and Sen. Franklin Drilon, and House Bill 8164, authored by House Majority Floor Leader Martin Romualdez, Rep. Yedda Romualdez and TUCP Party-list Rep. Raymond Democrito Mendoza.