BSP Program for Overseas Filipino Workers (OFWs)

A Presentation to the Beneficiaries/Families of OFWs

28 February 2006Cebu City

Bangko Sentral ng Pilipinas

BSP’s Program BSP’s Program for Overseas for Overseas Filipino Filipino Workers Workers (OFWs)(OFWs)


What is the BSP’s What is the BSP’s current program for current program for

OFWs? OFWs?


The BSP undertakes efforts that are geared The BSP undertakes efforts that are geared toward ensuring:toward ensuring:

a) a healthy economic and financial macro a) a healthy economic and financial macro economic environment economic environment

b) an efficient and safe financial infrastructure b) an efficient and safe financial infrastructure

that would make OFWs confident to remit that would make OFWs confident to remit money through the formal channels and transfer money through the formal channels and transfer their savings to the country. their savings to the country.


What programs can What programs can the BSP undertake for the BSP undertake for

OFWs? OFWs?


Objective of the BSPObjective of the BSPTo improve the remittance To improve the remittance environment by:environment by:reducing remittance chargesreducing remittance chargesfacilitating remittances through the facilitating remittances through the

formal channelsformal channelschanneling foreign exchange channeling foreign exchange

savings to investment instruments savings to investment instruments and micro-enterprise activitiesand micro-enterprise activities


Foreign

RP

Flows of RemittancesFlows of RemittancesFirst Mile

Second MileThird Mile


Initiatives for OFWsInitiatives for OFWs


Addressing the Third Mile IssuesAddressing the Third Mile Issues Bringing down the remittance charges by Bringing down the remittance charges by

promoting competitionpromoting competition

e.g.,e.g., require banks to post their remittance feesrequire banks to post their remittance fees post from BSP website a comparative bank post from BSP website a comparative bank

remittance charges remittance charges allow money transfer companies (MTCs) to allow money transfer companies (MTCs) to

partner with foreign and offshore banks in partner with foreign and offshore banks in providing remittance services to migrant providing remittance services to migrant workersworkers


Review of existing domestic banking Review of existing domestic banking regulations and other issues that affect the regulations and other issues that affect the payments and clearing systems, as well as the payments and clearing systems, as well as the overall remittance environmentoverall remittance environment

e.g.,e.g., review of ID requirements to open an accountreview of ID requirements to open an account facilitate approval of application to open bank facilitate approval of application to open bank

subsidiary abroadsubsidiary abroad push for interconnectivity among leading ATM push for interconnectivity among leading ATM

networksnetworks

Addressing the Third Mile IssuesAddressing the Third Mile Issues


Promoting channeling of foreign savings Promoting channeling of foreign savings to micro-enterprise activities and other to micro-enterprise activities and other alternative financial instruments that are alternative financial instruments that are safe and viablesafe and viablee.g., work for the issuance of

government securities solely

for OFWs



Conduct of information campaign and Conduct of information campaign and market promotions to raise awareness on market promotions to raise awareness on the benefits of remitting through the the benefits of remitting through the formal channels and to inform formal channels and to inform OFWs/beneficiaries on available savings OFWs/beneficiaries on available savings and investment opportunitiesand investment opportunities

e.g.,e.g., regional financial literacy campaignregional financial literacy campaign work with POEA on PDOSwork with POEA on PDOS



Facilitate interconnectivity of current ATM Facilitate interconnectivity of current ATM networks in the country (Megalink, Bancnet, networks in the country (Megalink, Bancnet, ExpressNet)ExpressNet)

Improving the interconnectivity of remittance Improving the interconnectivity of remittance service providers in the Philippines with those service providers in the Philippines with those abroad to facilitate the flow of remittancesabroad to facilitate the flow of remittances

e.g.,e.g., RP-US Memorandum ofRP-US Memorandum of

Intent initiatives Intent initiatives

Addressing the Second Mile IssuesAddressing the Second Mile Issues


Facilitating bilateral negotiations with host Facilitating bilateral negotiations with host countries with the view to eliminating/reducing countries with the view to eliminating/reducing barriers to the flow of remittancesbarriers to the flow of remittances

e.g.,e.g., lowering of license fees to set up branches lowering of license fees to set up branches

abroadabroad allowing undocumented OFWsallowing undocumented OFWs

access to the banking systemaccess to the banking system

Addressing the First Mile IssuesAddressing the First Mile Issues


Website:Website:www.bsp.gov.phwww.bsp.gov.phE-mail:E-mail:[email protected]@bsp.gov.ph

BSP Program for Overseas Filipino Workers (OFWs)

Economy & Finance

mile issues

remittance fees

ofws confident

remittance services

overall remittance environment

filipino workers ofws

channeling of foreign

undocumented ofws access