DOF's Diokno: Marcos OKs Landbank-DBP merger

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President Ferdinand Marcos Jr. approved the proposed merger of state-run lenders Land Bank of the Philippines and Development Bank of the Philippines (DBP), with Landbank as the surviving entity that could become the largest bank in the country in terms of assets.

In a text message to reporters, Finance Secretary Benjamin Diokno said the President, approved the merger during their sectoral meeting on Tuesday morning.During a Palace briefing, the Marcos administration’s chief economic manager said that “by merging the two it will now become the Number 1 bank in the Philippines aside from Banco De Oro in terms of assets.”

“Now, the President expressed the desire to merge the two, to make it the biggest bank of the country because of the recent financial developments abroad. And that’s really the best practice. The biggest bank is usually owned by the state, globally,” Diokno said. due to concerns that transforming the two institutions into one would not serve the public interest because the banks were created for different purposes.Diokno, who was then the Budget secretary, signed the resolution abandoning the Landbank-DBP merger as an ex-officio member of the Governance Commission for GOCCs along with then Finance Secretary Carlos Dominguez III.

“Maybe the interest rate that they will be charged will be lower, either up to two at the moment. In terms of the number of branches right now... between the two of them, of course as you know the Landbank is the bigger bank, right, it has how many branches, Land Bank has 752 branches at the moment, and the DBP has 147 branches,” Diokno said.

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