PVB revitalized with new Charter; bank execs laud Congress


The recent signing by President Rodrigo Duterte of Republic Act 11597 or the Philippine Veterans Bank Act is expected to pave the way for the revitalization of the bank as authorized capitalization will increase.

Philippine Veterans Bank logo

PVB officials lauded the enactment of RA 11597 or the new PVB Charter as they look forward to include post-World War II veterans to be shareholders while the bank continues to prioritize them and their immediate heirs.

RA 11597 consolidated House Bill No. 8164 and Senate Bill No. 2368 and was signed into law on December 10, 2021. It takes effect on January 21 by repealing the old Charter, RA 3518 which was amended by RA 7169 or an Act to Rehabilitate PVB.

House Majority Leader Martin Romualdez, together with Reps. Yedda Marie Romualdez (Tingog Sinirangan Partylist) and Raymond Democrito Mendoza (TUCP Partylist) were the principal authors of HB 8164.

SB 2368, on the other hand, was authored by Senators Grace Poe and Franklin Drilon, together with Majority Leader Juan MIguel Zubiri.

Authors of the measure explained that the newly-signed charter aims to align salient provisions with banking standards and norms.

Among the major amendments to the PVB Charter include the increase of capitalization from PHP 100 million to PHP 10 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.

The bank lauded 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 the Bank’s shareholders.

“On behalf of PVB’s Board of Directors, employees and staff, I would like to give our thanks to President Rodrigo Duterte for signing the “Philippine Veterans Bank Act” into law demonstrating once again his strong support of the veterans community for which veterans extend their gratitude,” said PVB Chairman and CEO Roberto F. De Ocampo, OBE.

De Ocampo added: “And we extend our gratitude as well to the authors and sponsors of RA 11597 for without them, this amended charter wouldn’t have become a reality.”