DBP, LANDBANK merger scrapped

Finance Secretary Ralph G. Recto confirmed that the planned merger between the Development Bank of the Philippines (DBP) and Land Bank of the Philippines (LANDBANK) has been officially scrapped.

Recto stated that the two banks have different mandates and that maintaining them as separate entities is more beneficial for the country.

The merger plan, which was previously pushed by former Finance Secretary Benjamin Diokno and had received the go-ahead from President Ferdinand "Bongbong" Marcos Jr. in March last year, is no longer on the table.

Diokno had estimated that the merger would generate at least P5.3 billion in annual savings and create the country's largest banking institution.

However, concerns were raised against the proposal, with Senator Risa Hontiveros warning it could create a bank that was "too big to fail."

DBP President and CEO Michael O. de Jesus also stated that combining the two institutions would offer no discernible benefits.

Recto expressed confidence that both banks will meet the Bangko Sentral ng Pilipinas' minimum capital requirements, even after their contributions to the Maharlika Investment Fund.