In the
previous post, we have already laid down the following facts:
THIS DREAM IS NOT A WALK IN THE PARK
Previously, we said that setting up an OFW Bank from start to finish is not as simple as opening your own savings account because it involves a long and circuitous process that requires our strong commitment to that vision, and much hard work and staying power if we are to see it happen in our lifetime or in a year or two, at best.
COLLECTIVELY, THE P3-B CASH CAPITAL IS NOT HARD TO RAISE
We have also established the fact that if we are to put up an OFW BANK as a commercial bank, we need to put up at least P3Billion (P2.4B minimum paid up cash capital + at least P600M for the operating and capital expenses based on rough estimates).
Current statistics even show that as of 2009 alone, there are in fact 1.479M documented OFWs already, and that number increasing at around 14-15% per year. So if we are to extrapolate for the current year (2010), the documented OFW would number around 1.686M Filipinos and multiply that by P2,300 that's P3.88 Billion for an initial capitalization - in cash - an enormous amount that the other big guys in business cannot produce just easily as the OFWs collectively.
SMALL BANK IS NOT THE WAY TO GO
Others may say that why don't we start with just a THRIFT BANK, SAVINGS BANK or RURAL BANK muna at least pag nalugi maliit lang. Saka na lang mag Commercial Bank license pag napalaki na ito at baka mas marami na ang mas gustong makilahok. That's a wrong mentality, at least in our context. Some might argue with that. But that's like planning how not to fail, rather than planning to win!
I will never recommend putting up a small bank like that as an OFW-led bank. Not that I have anything against these types of banking because in fact
most of these small banks also doing well, but the danger of a small bank is you have limited capital, limited leeway, and limited market, meaning, limited potential for growth. I mean isang malakas na bagyo lang o baha o atake ng peste o daga sa mga pananiman sa kananuyan kung saan nandoon ang mga hanapbuhay ng karamihan sa mga tumatangkilik sa mga maliliit na bangko, tapos na agad ang laban and
these small banks are left with soured or non-performing loans which is detrimental to business. At lalong mas mawalan ng gana ang karamihan tuloy.
That's why, to me, putting up these small banks is not worth our time. And how can we attract the best minds in the banking industry to that small bank? Because these guys are also practical. And small banks are not allowed to participate actively and directly in the FOREX or PHISEX market where the big potential for growth lies, and they are not allowed to lend to a single borrower so much amount, and such other limiting factors. Small banks are intended for small markets and big banks are for big markets, that's the equation.
Lest I might be misunderstood here, let me stress that I am not totally averse at putting up a small bank, my point is that why don't we put up a mother bank muna, the OFW COMMERCIAL BANK, and then with the money that is made out of its commercial banking operations, we can diversify and create subsidiary or independent banking businesses like Savings Banks, Thrift Banks, Rural Banks, Micro-Finance, etc to widen the opportunity for growth just like what Citibank is doing here in the Philippines. They put up CITIBANK SAVINGS Bank. RCBC now has RCBC SAVINGS Bank. BDO might even follow suit with BDO Savings Bank.
PREVIOUS ATTEMPTS THAT FAILED
There had been
several attempts in the past to put up an OFW BANK but these attempts
have generally soured or failed not necessarily because of the people spearheading it but it failed more on the business concept and approach and operational deficiencies based on what I have gathered from the news and articles available online. These are just inferences, not conclusions, since I am in no position to check the veracity of the facts presented there.
There was
a group before who also sincerely had the same dream that we have, but on hindsight, some important and crucial issues were not properly addressed from the very start. Issues such as how much will be the minimum investment involved, when to collect the investment, who will collect the investment, who will handle and manage the money, and many other issues.
THE ISSUE IS NEITHER "HOW MUCH?" NOR "WHEN?" BUT "WHO?"
There is no need to collect any amount yet, that should be the last activity, because we still have a lot of issues that need some inputs from you. Any attempt that focuses on collection of investment rather than focusing on coming up with the business plan is bound to fail because the business plan is the roadmap. Money should be the last of our concerns here because it has been established here that that is almost a non-issue. Remember
the P2,300?
The idea here is there should be NO COLLECTION YET of any amount not until we are ready for take off. I would rather suggest that everybody who espouse this dream to start saving any amount, say P1,000 per month, in your separate personal savings account and never touch it.
When the time comes, what we will do is we will conduct a survey on our committed investment - NO MONEY INVOLVED YET - but just your name or nickname, your email address, and your committed amount to be invested - para po bang i-survey lang po muna natin kung mga magkano na po kaya ang naitabi nating lahat na pangpuhunan natin para sa OFW COMMERCIAL BANK. Pag ang total committed amount based on that online survey ay kulang pa e di patuloy po muna ulit tayong magtabi nang magtabi ng pangpuhunan hanggang sa next round of survey through email or by any other easy means that you can suggest.
At pag sa tingin po natin ay makakabuo na po tayo ng P3B o higit pa, at pag buo na po ang maging Board of Trustees natin who will be selected by popular choice through online voting, and the candidate bank executives are ready and with the entire business plan, the marketing plan and the entire Organizational Setup is finalized then that's the time that we ask the BOARD OF TRUSTEES to open a TRUST FUND ACCOUNT in Land Bank of the Philippines.
Why in Land Bank and not in BDO or BPI or METROBANK, etc? It is so that the Filipino people in general will benefit rather than the Sy's or Ayala's or Ty's while the Fund is there with them held in trust.
But for now, kanya-kanyang hawak lang po muna tayo ng ating mga savings for future investment in OFW Commercial Bank. This will also avoid anyone's apprehensions about how their money is doing because it is still with them habang binubuo and they will directly benefit from its interests. Habang binubuo yung whole contribution, they can individually decide either to put it in their regular savings deposit, personal time deposit (1 year term) or invest it in Treasury Bills (30 days, 60, 90 180 or 360 days maturity) or Government Bonds and Notes dahil siguradong walang lugi. Don't place them in mutual funds or corporate stocks just yet because if you are going to redeem them in a year or two lugi pa po kayo.
We will do this while our application for an OFW BANK is being processed in the BSP, remember Mr. Jaime C. Laya is our former Central Bank Governor and everyone should be comfortable because he is an acclaimed expert in that aspect, and I think he still commands some respect from BSP executives, that should make things easier for us. And besides, are you aware that Mr. Jaime C. Laya is currently an Independent Director of GMA Network? That even makes life easier for us here. Aren't you excited?
So you see, the "how much" issue is not the main concern I think. The biggest issue is the "who will.." because we cannot just easily put our trust with just anybody that we do not know or are not publicly known. They may have the best of sincerity and honesty as individuals but because most OFWs do not know them then there's the problem that results to lesser participation.
That is why below I presented an initial list of certain public figures of propriety and of good public record specially in terms of public service in their chosen fields of mastery. I have also included here their personal data and background though this may not contain their entire accomplishments and achievements but you can research for more about them.
SUGGESTED PERSONALITIES FOR CONSIDERATION
In the GMA7 online forum, I mentioned about some prominent individuals of great personal integrity and sterling records in public service, people like, but not limited to, Atty. Felipe L. Gozon, the Chairman of GMA Network; broadcasters Mike Enriquez of Imbestigador, Mel Tiangco, retired Chief Justice Artemio V. Panganiban, former Monetary Board Chairman and Central Bank Governor Jaime C. Laya, retired Chief Justice Reynato S. Puno are suggested to become our Board of Trustees to oversee the Fund. From this initial short list, you can vote who do you think should be part of our Board of Trustees by clicking on their names on the survey at the bottom of this page.
Felipe L. Gozon
Chairman, President & CEO of GMA Network
Atty. Felipe L. Gozon obtained a Bachelor of Laws degree from the University of the Philippines and a Masters of Laws degree from Yale University. He is a partner in the law firm of Belo Gozon Elma Parel Asuncion & Lucila. As a distinguished aviation lawyer, he was a member of the Philippine Air Negotiating Panel and is cited in the Asia Pacific Legal 500 as a leading expert in this field. His business experience includes acting as a director of the International Corporate Bank and as Chairman of Marcopper Mining Corporation. Atty. Gozon has been the Chairman of the Board of Directors of the Company since 1975. He currently holds the positions of Chairman, President and Chief Executive Officer. Since assuming leadership of the Company in October 2000, the Company’s ratings have improved greatly, surpassing its nearest competitor in 2003. Atty. Gozon was named CEO of the Year by UNO Magazine in 2004 and Master Entrepreneur of the Year (Philippines) 2004 by SGV/Ernst & Young in 2005. People Asia Magazine included him in the list of People of the Year 2005. He is also currently Chairman, Vice-Chairman or director of several other institutions such as the Malayan Bank Savings & Mortgage Bank, the Children’s Museum and Library, Inc., the Asian Institute of Journalism and Communication and the Nova Foundation for Differently Abled Persons, Inc. He is also a director and/or Chairman of some of the subsidiaries and affiliates of the Company, such as GMA New Media, GMA Films, Alta Productions, Citynet, GMA Marketing and Productions, Inc., Scenarios, Inc., EMC Network, Inc., GMA Kapuso Foundation, Inc., INQ7 Interactive, Inc., GMA Records and Mont-Aire.
Miguel C. Enriquez
SVP, Radio Operations Group, GMA Network
Mr. Enriquez earned a bachelor’s degree in liberal arts and commerce from De La Salle University. He began his broadcasting career in 1969 as a radio staff announcer for the Manila Broadcasting Company. Since then, he has occupied a wide range of positions from program director to general manager. His last position before joining the Company was as Vice President for FM operations and a member of the board of directors of Radio Mindanao Network, one of the country’s largest privately-owned radio networks. In addition to his executive functions, Mr. Enriquez also anchors 24 Oras, Channel 7’s flagship newscast and Imbestigador, a highly-rated prime time investigative program. He also hosts an early morning news and current affairs program on the Company’s flagship radio station, DZBB. He is the recipient of various broadcasting awards, both in the Philippines and abroad.
Artemio V. Panganiban
Independent Director, GMA Network
Chief Justice Panganiban obtained earned a bachelor’s degree from the Far Eastern University. He later obtained a degree in law from the same institution, with cum laude honors. He was admitted to the bar in 1960, placing sixth in the bar examinations. In 1995 he was appointed Justice of the Supreme Court and held the position of Chief Justice from 2005 until his retirement in 2006. Prior to entering public service, Chief Justice Panganiban practiced law from 1963-1995 with Panganiban Benitez Parlade Africa & Barinaga Law Office where he was a senior partner. He was President of several corporations, including Baron Travel Corporation from 1967 to 1993, Arpan Tourism Industries Corporation from 1974 to 1993 and the Philippine Daily Inquirer, Inc. from 1991 to 1992. Chief Justice Panganiban was President of the Tourism Organization of the Philippines from 1977 to 1986, the Philippine Society of Travel Agents from 1974 to 1976 and the Philippine Association of Tourist Transport Operators from 1979 to 1987 and Vice-President of the Philippine Chamber of Commerce and Industry from 1993 to 1995. Chief Justice Panganiban also acted as Director for certain corporations such as International Corporate Bank (then known as Continental Bank) which later merged with the Union Bank (1972-1974).
Jaime C. Laya
Independent Director, GMA Network
Laya is a recipient of the Association of Certified Public Accountants in Public Practice Lifetime Achievement Award for 2007. He is founder and chairman of the firm Laya Mananghaya & Co. (currently Manabat Sanagustin & Co.) until his retirement in 2004. Laya graduated magna cum laude from the University of the Philippines with a degree in Business Administration. At the age of 18, he placed 8th in the 1957 CPA examination and had to wait three years before taking his oath. He taught accounting, economics, and management courses at UP after graduation. While with the University of the Philippines, Laya studied at the United States for his masters and doctorate degrees. In 1974, Laya joined the government service and served in various capacities until 1986, including as minister of Education, Culture and Sports, minister of Budget, and as governor of the Central Bank of the Philippines. After retiring from government service in 1986, Laya founded J.C. Laya & Co., Ltd. and engaged in accounting and consulting work. The firm grew and was later renamed Laya Mananghaya & Co. Laya is chairman and president of the Association of Certified Public Accountants in Public Practice in 2003 and of the ACPAPP Foundation, Inc. in 2004.
Mel TiangcoPopular Broadcaster & TV News Anchor, GMA Network
Carmela Tiangco Cornejo popularly known as 'Mel Tiangco' - a popular television newscaster and television host in the Philippines. Tiangco was a newscaster at ABS-CBN however after taking part in a Tide TV ad in mid-1995 she was suspended from the network as newscasters of ABS-CBN are prohibited to endorse a product. This led to her exile to GMA Network, joining Jay Sonza. She currently co-anchors GMA Network's evening newscast, 24 Oras with Mike Enriquez. She is also the host of the now-defunct weekly drama anthology Magpakailanman and now the Mel and Joey with comedian-TV host-writer and a co-host for Joey de Leon.
Off camera, she is the mother of Wency Cornejo, a musician best known as the lead vocalist of the now-defunct Philippine rock band After Image (active in the 90s). She is also involved in philanthropic work as the Executive Vice President of the GMA Kapuso Foundation, the network's socio-civic arm.
Reynato S. Puno was the 22nd Chief Justice of the Supreme Court of the Philippines. Appointed on December 8, 2006 by President Gloria Macapagal-Arroyo, he was the 22nd person to serve as Chief Justice. Puno had initially been appointed to the Supreme Court as an Associate Justice on June 28, 1993.
Puno earned his law degree from the University of the Philippines. During his stay in the state university, he also served as editor of the Philippine Collegian. He would later finish post-graduate studies at the Southern Methodist University, Dallas, Texas (Master of Comparative Laws), University of California, Berkeley (Master of Laws), and University of Illinois (finished all academic requirements of the degree of Doctor of Judicial Science).
Puno began his legal career in private practice. In 1969, he joined the law practice of his elder brother Isaac, a future judge whose murder at age 39 remains unsolved to date. In 1971, he joined the Office of the Solicitor General, where he would serve for the next nine years.
In 1980, Puno was appointed by President Ferdinand Marcos as a Justice of the Court of Appeals. He rejoined the executive department in 1984, this time as a Deputy Minister of Justice. Upon the assumption into office of President Corazon Aquino in 1986, Puno was reappointed to the Court of Appeals.
Puno has been praised for his erudite and literary writing style. His predecessor as Chief Justice, Artemio Panganiban, once lauded Puno's writing in the following manner:
"Like a trained surgeon, he uses his pen with razor-like precision to separate the excise fabrication from truth and pretension from reality. In the process, he gives life to populist causes and libertarian ideals. Darting, gutsy and erudite, he often wages lonely battles against conventional wisdom with his stirring dissents and insightful opinion." (Panganiban, Justice and Faith, p. 142).
(Personal Details copied from WIKIPEDIA.. photo was copied from a ROTARY website.) 
