BSP Program for Overseas Filipino Workers (OFWs)


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a Presentation by Bangko Sentral ng Pilipinas (BSP) at the BSP Regional Financial Literacy Campaign for OFWs in Cebu City, Philippines on February 28, 2006

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  • BSP Program for Overseas Filipino Workers (OFWs)

    1. 1. BSP’s Program for Overseas Filipino Workers (OFWs) A Presentation to the Beneficiaries/Families of OFWs 28 February 2006 Cebu City Bangko Sentral ng Pilipinas
    2. 2. What is the BSP’s current program for OFWs?
    3. 3. <ul><li>The BSP undertakes efforts that are geared toward ensuring: </li></ul><ul><li>a) a healthy economic and financial macro economic environment </li></ul><ul><li>b) an efficient and safe financial infrastructure </li></ul><ul><li>that would make OFWs confident to remit money through the formal channels and transfer their savings to the country. </li></ul>
    4. 4. What programs can the BSP undertake for OFWs?
    5. 5. Objective of the BSP <ul><li>To improve the remittance environment by: </li></ul><ul><ul><li>reducing remittance charges </li></ul></ul><ul><ul><li>facilitating remittances through the formal channels </li></ul></ul><ul><ul><li>channeling foreign exchange savings to investment instruments and micro-enterprise activities </li></ul></ul>
    6. 6. Foreign RP Flows of Remittances First Mile Second Mile Third Mile
    7. 7. Initiatives for OFWs
    8. 8. Addressing the Third Mile Issues <ul><li>Bringing down the remittance charges by promoting competition </li></ul><ul><li>e.g., </li></ul><ul><ul><li>require banks to post their remittance fees </li></ul></ul><ul><ul><li>post from BSP website a comparative bank remittance charges </li></ul></ul><ul><ul><li>allow money transfer companies (MTCs) to partner with foreign and offshore banks in providing remittance services to migrant workers </li></ul></ul>
    9. 9. <ul><li>Review of existing domestic banking regulations and other issues that affect the payments and clearing systems, as well as the overall remittance environment </li></ul><ul><li>e.g., </li></ul><ul><ul><li>review of ID requirements to open an account </li></ul></ul><ul><ul><li>facilitate approval of application to open bank subsidiary abroad </li></ul></ul><ul><ul><li>push for interconnectivity among leading ATM networks </li></ul></ul>Addressing the Third Mile Issues
    10. 10. <ul><li>Promoting channeling of foreign savings to micro-enterprise activities and other alternative financial instruments that are safe and viable </li></ul><ul><li>e.g., </li></ul><ul><ul><li>work for the issuance of </li></ul></ul><ul><ul><li>government securities solely </li></ul></ul><ul><ul><li>for OFWs </li></ul></ul>Addressing the Third Mile Issues
    11. 11. <ul><li>Conduct of information campaign and market promotions to raise awareness on the benefits of remitting through the formal channels and to inform OFWs/beneficiaries on available savings and investment opportunities </li></ul><ul><li>e.g., </li></ul><ul><ul><li>regional financial literacy campaign </li></ul></ul><ul><ul><li>work with POEA on PDOS </li></ul></ul>Addressing the Third Mile Issues
    12. 12. <ul><li>Facilitate interconnectivity of current ATM networks in the country (Megalink, Bancnet, ExpressNet) </li></ul><ul><li>Improving the interconnectivity of remittance service providers in the Philippines with those abroad to facilitate the flow of remittances </li></ul><ul><li>e.g., </li></ul><ul><ul><li>RP-US Memorandum of </li></ul></ul><ul><li>Intent initiatives </li></ul>Addressing the Second Mile Issues
    13. 13. <ul><li>Facilitating bilateral negotiations with host countries with the view to eliminating/reducing barriers to the flow of remittances </li></ul><ul><li>e.g., </li></ul><ul><ul><li>lowering of license fees to set up branches abroad </li></ul></ul><ul><ul><li>allowing undocumented OFWs </li></ul></ul><ul><ul><li>access to the banking system </li></ul></ul>Addressing the First Mile Issues
    14. 14. Website: E-mail: [email_address]