Philippine Veterans Bank
 |
|
| Private | |
| Industry | Banking |
| Founded | Manila, Philippines (1963) |
| Headquarters | Makati, Philippines |
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Key people
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Roberto F. De Ocampo, OBE - Chairman & CEO Guillermo L. Parayno Jr. - Vice-Chairman Nonilo C. Cruz - President & COO |
| Products | deposits, loans, financial services |
| PHP 320 million (2014) | |
|
Number of employees
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900 |
| Website | www.veteransbank.com.ph |
Philippine Veterans Bank, also known as PVB and Veterans Bank, is a commercial bank in the Philippines. The bank is owned by Philippine World War II war veterans and their families and caters to both corporate and retail financial markets. As part of its charter, PVB allocates 20% of its annual net income for the benefit of its shareholders.
The concept of a bank for veterans of World War II was conceived in 1956, when a war reparations agreement was signed between Japan and the Philippines. The agreement provided for twenty million dollars in cash, five million pesos in capital and ten million dollars in services. Under Republic Act No. 1789, better known as the Reparations Act, the cash reparations were set aside into a special trust fund for the use of World War II veterans and their families. There were plans to split the funds evenly among all veterans, but legislators say that it is in the higher interest that the funds be invested in a bank that would service their needs. If the fund were split at the time, each veteran would get only one hundred pesos at the then-prevailing exchange rate of two pesos per U.S. dollar.
Through the stirring words of Senator Camilo Osías, as shown in the excerpt below, the Philippine Veterans Bank was born on June 18, 1963 through Republic Act No. 3518, which would become its charter.
Under the PVB charter, the bank's subscribed capital of one hundred million pesos would be divided into 510,000 common shares and 490,000 preferred shares, all with a par value of one hundred pesos. All common shares were subscribed by the government on behalf of the veterans, their families and descendants, while the preferred shares were distributed for free among the veterans.
Unfortunately, the presidency of Ferdinand Marcos proved disastrous for the bank. Subsequent amendments to the PVB charter made through the use of presidential decrees enabled government control over the appointing of PVB's officers, even though the veterans would receive the right to elect their own board members five years after the organization of the bank through the transfer of PVB's common shares. That effectively curtailed the right of the veterans to choose their own board of directors even after all common shares were transferred to them. In essence, the veterans became PVB shareholders in name only. Due to capital deficiencies (and political excesses during the Marcos era), PVB was ordered closed by the Bangko Sentral ng Pilipinas on April 10, 1983, placed under receivership, and subsequently liquidated on June 17, 1985.
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Wikipedia