DBP: Merger with LANDBANK requires legislation

State-run Development Bank of the Philippines (DBP) on Tuesday said the plan to merge it with the Land Bank of the Philippines would require legislation.

On Tuesday morning, Finance Secretary Benjamin Diokno announced that the President Ferdinand Marcos Jr. had given the thumbs-up to merge DBP with Landbank, with the latter as the surviving entity seen to become the largest bank in the country in terms of assets.

“DBP believes that any merger would require an act of Congress as both institutions were created by enabling laws,” the lender said in a statement.

The DBP said that there was still “no formal decision” on the merger plan.

However, the lender said it echoed and shared the sentiments of the President "on the need to conduct a thorough and meticulous legal study on the proposed merger of DBP and LBP which he firmly declared during a meeting with all stakeholders in Malacañang today, March 28, 2023.”

Data from the Bangko Sentral ng Pilipinas as of September 30, 2022 showed BDO as the country’s top bank in terms of assets with P3.73 trillion.

It was followed by Landbank with assets worth P2.76 trillion. DBP, on the other hand, ranked eighth with P1.035 trillion worth of assets.

“DBP is committed to fulfilling its mandate of being a catalyst for national development by serving the financing needs of strategic and critical economic sectors, particularly infrastructure and logistics, micro, small and medium enterprises, social services, and the environment,” DBP said.

“We assure the general public that the entire Board of Directors, Management Team and the rest of the public servants of DBP remain steadfast in serving the banking needs of our clients. And we shall continue to do so with the same passion, dedication, and commitment as we have done for the past 76 years,” it added. —NB, GMA Integrated News