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
www.lbpeasypadala.com
www.landbank.com

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.