Gilda Pico Ceo Panel 1
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Gilda Pico Ceo Panel 1 Presentation Transcript

  • 1. “Development Finance and Migrant Workers Remittances” GILDA E. PICO President and CEO Land Bank of the Philippines ADFIAP CEO Panel October 29, 2009 Dusit Thani Manila
  • 2. Impact of remittances to the global economy Remittances have played a central role in the economies of many labor-sending countries Global remittances in 2008 amounted to US$305 B With US$16.4 B, Philippines ranked 4th in terms of amount of remittances Top 5 Countries in Inward Remittances (In billion) 1 India US$ 45 2 China US$ 34 3 Mexico US$ 26 4 Philippines US$ 16 5 Poland US$ 11 Source: World Bank
  • 3. Remittances to the Philippines OFs, through their inward remittances, contribute significantly to growth and development and help boost the economic structure According to BSP estimates, OF remittances will reach US$16.9 B this year In July alone, remittances from overseas Filipinos coursed through banks reached US$1.5 B
  • 4. Remittances to the Philippines Sustained demand for Filipino manpower and talent abroad is expected to drive the remittance flows to the Philippines OFs’ remittances now account for about 10% of Philippine GDP Fuel domestic consumption in the overall economy Help the country improve its balance of payments Consumption patterns among families and beneficiaries of OFs have gone beyond spending for the basic necessities They can now afford durable goods Significant portion of the new homes built and vehicle sales in the Philippines are financed by inward remittances Inward remittances build up the country’s international reserves and help stabilize our exchange rate
  • 5. Remittances to the Philippines Remittances can better contribute to the economy and to the development of our country if put into more productive use OFs must be encouraged to become savers, investors and entrepreneurs Help create jobs and livelihood for more people Multiplier effect on tax generation Creation of greater value in the economy Major challenges for financial institutions 1. To make remittance services more accessible and less costly 2. To have programs that would help OFs and their families take
  • 6. Harnessing remittances for development LANDBANK deals with both challenges head on, as we seek to constantly improve and expand our banking services for OFs Offers wide array of services that respond to their needs: Pre-departure Stay in their host countries Upon their return to the Philippines Pre-Departure Orientation Seminars (PDOS) In partnership with the OWWA Helps educate the participants about optimizing their earnings; Financial literacy Inspire OFs to venture into their own businesses Workers Education Program In partnership with the POEA Promote the protection and education of OFs Geared at ensuring that OFs are well-prepared prior to their departure and are educated on the banking services available to them
  • 7. Harnessing remittances for development The balance on deposits form part of the funds we lend to micro, small and medium enterprises in the countryside Deposits are used for lending to support the proponents of productive endeavors or development projects OFs indirectly help turn into reality the many initiatives that develop our country Special deposit accounts for overseas Filipinos and their Requirements beneficiaries Peso ATM USD Savings Account Initial Deposit P 100 $ 10 Maintaining Balance P 100 $ 10 Initial deposit and maintaining balance for regular Peso ATM account is PhP500 Initial deposit and maintaining balance for regular USD savings account is US$100
  • 8. Harnessing remittances for development Offered Long Term Negotiable Certificates of Deposit which yielded higher returns LANDBANK’s aim: Give our OFs and their beneficiaries greater access to banking products and services at the most reasonable cost Most extensive network of branches in the Philippines Present in 80 provinces 342 branches and field units LANDBANK ATMs reached 821 4th widest network of ATMs in the country
  • 9. Harnessing remittances for development LANDBANK OFW Cash Card Electronic debit card Linked to Smart-enabled mobile phones Safe Opening Deposit None Convenient Maintaining Balance None Fast Aggregate Credits per Php100,000 Affordable month Documentation Enrollment Form, 1 valid ID, ID picture Card Validity Period Maximum of 2 years/Renewal fee of Php120 ATM Limit per day Php30,000.00 Cash Transactions May be done through nearly 8,800 Expressnet, Bancnet and Megalink ATMs nationwide Dormancy Period Inactive for 6 months/Renewal fee of P120 Mobile Banking Balance inquiry, phone to phone transfer, etc.
  • 10. Harnessing remittances for development Inward Remittance System Ensures faster, safer and more efficient remittance delivery A web-based remittance facility Direct Wires i-Wires i-Padala i-Sweldo
  • 11. Harnessing remittances for development Expanding and strengthening tieups with remittance companies OFs may avail of affordable remittance services through 80 LANDBANK partners Strategically located worldwide
  • 12. Harnessing remittances for development Products and services to OFs and their families achieve their financial goals Investment Products Government securities Retail Treasury Bonds Time deposits Trust Products Personal living trust Unit Investment Trust Fund (UITF) Livelihood loans Working capital, fixed assets acquisition and trade financing purposes In support of projects related to agriculture, manufacturing, trading and merchandising, and services
  • 13. Thank you.