History

In 24 May 1906, the passage of Act No. 1493 created the Postal Savings Bank as a division of the Bureau of Posts. All post offices were considered and in fact operated as a division of Posts. Its operations tapped savings by bringing banking services to rural areas.

During the Japanese occupation period (1943-1944), all loans were liquidated with Japanese war notes. Coupled with severe inflation, said era caused a complete breakdown of the banking structure of the economy. These setbacks and other ravages of war which damaged about 70% of the records of the PSB crippled its operations.

To enable the economy to recover, Executive Order No.48 was issued on 6 June 1945 to pave way for the reopening of the pre-war banks.

However, it is only in 1946 that the PSB resumed service in Manila. Starting with only 15,737 savings deposits accounts with a total value of P4,104,223, the bank rapidly grew with deposits jumping to P14.4 million in 1947 (250% increase), P25 million in 1948 (74% increase), and P33 million in 1949 (32% increase). Moreover, as a result of thrift campaign conducted by the PSB, demand for savings banking services increased which opened up opportunities for the expansion banking facilities.

In 1960's the private banking sector, especially the rural banks, rapidly grew while the operations of the PSB deteriorated due to the shift of its clients to private banks because of higher interest on savings deposits offered.

Nonetheless, the PSB was considered unduly competing with the private sector and was thus dissolved. In view of this, Pres. Ferdinand E. Marcos issued the Presidential Decree No. 121 dated 29 January 1973 mandating that : a) PSB branches shall not be established in places where banking services are already available; b) one year thereafter, existing PSB operations maintained in such places shall be completely discontinued; and c) within three years from the said date, all operations of the PSB shall be completely discontinued.

On January 1976, the PSB was finally phased out with the Philippine National Bank (PNB) serving as its liquidator pursuant to provisions of P.D. No. 241.

Among the powers granted to the Philippine Postal Corporation (Philpost) under Republic Act No. 7354 was the power to reopen or reactivate the Philippine Postal Savings Bank (PPSB).

On 24 August 1993, Postmaster General Eduardo P. Pilapil appointed Mr. Beatroz Alaan as Consultant for the reopening of the Postal Savings Bank.

On 05 October 1993, Postmaster General Pilapil requested the Bangko Sentral ng Pilipinas, through Deputy Governor Feliciano Miranda, Jr. for an authority to reopen the defunct Postal Savings Bank.

On 23 October 1993, the Philpost Board of Directors passed Resolution No. 93-119 approving PHILPOST 2000, the Medium Term Corporate Plan of the Philippine Postal Corporation (1994-2000). Among others, said corporate plan states, “Pursuant to the Macroeconomy and Development Financing Policy stipulated in the Medium-Term Philippine Development Plan 1993-1998 to “Develop the rural financial sector to ensure adequate supply of credit to the countryside,’ the PHILPOST shall re-establish the Postal Savings Bank as a subsidiary.

To facilitate the earliest possible re-opening of the PPSB, Postmaster General Eduardo P. Pilapil directed the conceptualization of the reactivated PSB’s thrust, priorities, programs and operational framework and the preparation of documents required by the Bangko Sentral ng Pilipinas (BSP) for the issuance of an authority to re-open the PSB in favor of Philpost.

On 21 July 1994, the Philippine Postal Savings Bank was re-opened by former Pres. Fidel Valdez Ramos in a simple ceremony held in Malacañang.

 

 

 

copyright 2002 by Postal Savings Bank, Inc.