Senator Grace Poe officially endorsed for Senate approval the “Philippine Veterans Bank Act” or Senate Bill No. 2368 that institutes a revised charter for the Philippine Veterans Bank (PVB) to include post-World War II veterans and soldiers.
“We need to secure the future viability of the bank, as well as ensure its continuing contribution to the welfare of our veterans,” said Poe, chairperson of the Senate committee on banks, financial institutions and currencies.
Signed by 15 senators, Committee Report No. 288 repeals the old charter and recognizes the PVB’s nature as a private commercial bank.
The bill realigns the bank’s internal structure and powers according to the Revised Corporation Code, General Banking Act, and other pertinent laws and regulations.
“It is only timely that its charter be revised to reflect the changes which happened during the half-century of its existence.”
“It is only timely that its charter be revised to reflect the changes which happened during the half-century of its existence,” the veteran legislator said in her sponsorship speech.
The PVB was created in 1963 under Republic Act 3518 and rehabilitated in 1992 under Republic Act 7169.
The bill provides for an increase in the bank’s capitalization from P100 million to P10 billion.
The bill also provides for an increase in the bank’s capitalization from P100 million to P10 billion to align its capitalization with the minimum level prescribed by the Bangko Sentral ng Pilipinas for private commercial banks.
In order to assist the bank in raising capital while also ensuring that veterans will remain in control, the previous 20-share limitation for each veteran or dependent has been lifted and shares are now open to non-veterans, provided that the majority of both common and preferred shares still belong to veterans.
The bill also includes a “more methodical and stricter guideline” for the distribution of the net profits of the bank, updated penalties for specific violations, and a more stringent accounting system where the bank will now have its own auditing department and will be audited annually by a reputable external auditing firm.
“The thrust of the bank is to promote the welfare of the veterans, which is why we need to make sure that the money meant for them is well-accounted for,” the seasoned lawmaker emphasized.
