Philippine Veterans Bank (PVB) begins a new chapter in its vibrant history with the recent passage of Republic Act 11597 paving the way for the revitalization of the bank as it can now increase its capitalization and include post-World War II veterans to be shareholders while maintaining priority for World War II veterans and their immediate heirs.
Otherwise known as the “Philippine Veterans Bank Act”, R.A. 11597 was signed by President Rodrigo Duterte last December 10, 2021, and is slated to take effect by January 21, 2022, repealing the Bank’s old charter (R.A. 3518 – An Act Creating the Philippine Veterans Bank) which in turn was amended by R.A. 7169 (An Act to Rehabilitate Philippine Veterans Bank).
The new PVB Charter is the consolidation of Senate Bill No. 2368 authored by Senator Grace Poe, Senate Majority Floor Leader Juan Miguel Zubiri, and Senator Franklin Drilon; and of House Bill No. 8164 authored by House of Representatives Majority Floor Leader Martin Romualdez, Congresswoman Yedda Romualdez and TUCP Partylist Congressman Raymond Democrito Mendoza.
While the newly-signed charter aims to align salient provisions with banking standards and norms, major changes to the PVB Charter include the increase of capitalization from P100 million to P10 billion which will allow PVB to issue additional stocks, increasing the number of the Board of Directors to 15 from the present 11, and move its head office to Makati City which was previously located in Manila.
The most significant amendment in the new charter is how the bank defines “veterans” which is closely tied to stock ownership. The old PVB charter defined “veterans” as only those Filipinos who fought during World War II and thereafter recognized as “World War II Veterans”.
As such ownership of the Bank was limited to said Filipino veterans and their designated heirs. Under the amended charter, “veterans” will now also include post-World War II veterans thereby allowing AFP retirees to be shareholders as well.
The new charter also highlights the provision that maintains PVB’s status as a government depository bank, allowing it to accept deposit from national government agencies, local government units, and government corporations. By extension, this allows PVB to continue
offering its products and services such as loans and cash management services to government clients. This is what makes PVB versatile – it
is a private financial institution catering to private individuals and corporates but is also a government depository.
PVB lauds the passage of R.A. 11597 as it will allow the Bank to continue its mission and purpose of serving Filipino veterans and their families. In keeping with the original intent of the Bank’s founders, PVB will continue to allocate 20% of its annual net income for the benefit of Filipino veterans and their families. This will be through programs and endeavors that will be beneficial to the well-being of the bank’s shareholders.