Marcos admin scraps DBP-LANDBANK merger plan

The Marcos administration has scrapped its plan to merge state-run lenders Development Bank of the Philippines (DBP) and Land Bank of the Philippines (LANDBANK), citing conflicting mandates.

Finance Secretary Ralph G. Recto confirmed on Tuesday that both institutions will remain independent, emphasizing their distinct missions foster healthy competition and are more beneficial for the nation's economy than a merger.

Recto assured during an event in Manila that DBP and LANDBANK can meet the Bangko Sentral ng Pilipinas' minimum capital requirement, highlighting their financial stability and potential retained earnings from dividends.

The proposed merger was expected to create the largest bank with assets worth P4.07 trillion but raised concerns about concentration of capital and potential job losses for DBP employees.

Despite initial support by former Finance Secretary Benjamin Diokno, who saw annual savings of at least P5.3 billion, Recto stated that maintaining two government depository banks is more advantageous.