‘Too big to fail:’ Hontiveros, Gatchalian raise concerns over DBP-Landbank merger

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Two senators have cautioned the government over its planned merger of two state-run banks, which they said would create a “super monopoly” or could result in a financial entity “too big to fail.” | MAgerINQ

Besides, Hontiveros pointed out that the two banks “carry out separate, and distinct mandates” with the DBP serving industry by financing infrastructure, logistics, and commerce while the Landbank has been the primary institution mandated to finance the acquisition of land estates, and assist, among others, small farmers, fisherfolk, and agrarian reform beneficiaries.

“These two institutions have very different mandates and very different client bases. Bakit ipagsasama ang dalawang banko na magkaiba ang misyon at layon?” Hontiveros said she would file a resolution, urging the Senate “to safeguard the stability of the financial sector by exercising oversight over the proposed merger.”Senator Sherwin Gatchalian, meanwhile, raised “serious concerns” over the planned merger as this he said would create a “super monopoly” that will have control over local government unit deposits.

 

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