In filing proposed Senate Resolution 570, Hontiveros again raised concerns about the potential risks and benefits that it may bring to the economy, the stability of the financial system, and various stakeholders, including the employees of both banks.
“Large banks were found to have lower capital, less stable funding, more market-based activities, and more organizationally complex than small banks, suggesting a distinct, possibly more fragile, business model,” she said.
Apart from this, she said the employees association and union of the LBP and DBP raised concerns about this plan, claiming that the LBP violated the terms of their Collective Negotiations Agreements by failing to consult with the unions beforehand.
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