Fil-Ams to invest P150M in AFP bank ‘for heroes’

By Doris Dumlao
Inquirer

MANILA, Philippines -- The largest organization of Filipinos based in North America will invest P150 million in Centennial Savings Bank, owned by the Armed Forces of the Philippines, in a bid to transform it into a facility for “real and living heroes.”

In a statement, CSB announced that it had recently signed a memorandum of understanding with the Filipino Foundation for International Brotherhood, or Kapatiran, for the organization’s investment in the bank this year.

The capital buildup is in line with CSB’s intention to launch new products and technologies that would transform the bank into “a major service provider to overseas Filipinos and the men and women of the Armed Forces.”

CSB said the entry of the OFW investor group would “further realize the bank’s main objective to be the bank of the real and living heroes, the uniformed men and women and the overseas Filipinos.”

“The stakeholders of the bank view this as a very timely move that will maximize the bank’s potential,” the bank said.

CSB was established in 1998 by the AFP Savings and Loan Association Inc. and the AFP Mutual Benefits Association Inc. to cater to the banking needs of AFP members and small businessmen. Its main offices are located at Don Francisco Ortigas Street (formerly Emerald Avenue), Ortigas Center, Pasig City.

The thrift bank also has branches in Santa Rosa, Laguna, Villamor Air Base, Camp Aguinaldo and Baguio City.

AFP Chief of Staff Gen. Hermogenes C. Esperon Jr., who chairs CSB, recently witnessed the signing of the MOU that signaled the entry of overseas Filipinos as investors. Paul Ysmael and Nem Santos Jr., CSB president and Kapatiran secretary general, respectively, signed for their institutions.

1 million members

Founded in 1982, Kapatiran is the largest organization of Filipinos in North America with a membership of over a million Fil-Americans and Fil-Canadians. The organization links up with other Filipino organizations worldwide, like OFWNet Foundation, largest in the Middle East.

The organization has among its members businessmen, physicians, lawyers, accountants, engineers, nurses, bank and insurance executives, health care workers and Filipinos serving in the US military.

The bank said the three-way partnership assured CSB of a “stable financial backbone in the very competitive and challenging thrift banking industry.”

“Moreover, the entry of Kapatiran paves the way for a more active participation of our overseas workers in the Philippine economy, consistent with the development agenda of the government,” the bank said.

Resilient to shocks

Through the years, remittances from OFWs have made the Philippine economy more resilient to shocks that could otherwise slow down growth, worsen unemployment and put the country’s external viability at risk. These inflows, estimated at $14 billion in 2006, are now equivalent to about a tenth of the country’s gross domestic product and about 60 percent of the central bank’s foreign reserves.

Migration is a way out of poverty for many households while the resulting inflows also effectively provide a buffer for the public sector whose external debts account for over 80 percent of the country’s gross domestic product.

The Philippines is also seen sitting on a potential gold mine with its large pool of expatriates who intend to settle back in the country and could thus become a significant economic force of the future.

Source

Long live the Filams!!!!

^ Fil-Canadians too!