Hontiveros warns DBP, LandBank merger could result in ‘too big to fail’ bank

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Senate Deputy Minority Leader Risa Hontiveros on Wednesday warned against the proposed merger of the LandBank and the DBP, saying it could result in a financial entity that is “too big to fail.”

Senate Deputy Minority Leader Risa Hontiveros on Wednesday warned against the proposed merger of the Landbank of the Philippines and the Development Bank of the Philippines , saying it could result in a financial entity that is “too big to fail.”

“We have to understand exactly where the redundancies are and what efficiencies can be gained from this merger, and balance these against any risks that the merger may pose to the economy and financial system,” she said. Further, she noted the history of controversies, such as behest loans and other transactions that were allegedly tainted with undue influence and conflict of interest, wherein the DBP was involved.

 

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