DBP's Tiñga: Merger with Landbank is a dangerous experiment

The Development Bank of the Philippines stood firm in its opposition to the proposed merger with another state-owned bank, the Land Bank of the Philippines, warning of its potential adverse impact on the economy and the financial system should the “superbank” collapse.

Landbank is the Philippines’ second largest universal bank with P2.76 trillion in assets, next to BDO Unibank with P3.73 trillion in assets.If the merger materializes, Landbank as the surviving “superbank,” would be the largest bank in the country with assets worth about P4 trillion. “If merger is inevitable, the DBP should be the surviving entity because of its richer legacy, more extensive experience, and expertise and better track record in development financing," Tinga said.defended the proposed mergerIn a separate statement, Diokno said that contrary to the claim that the merger was a “dangerous experiment,” the proposal was the result of “careful analysis of the costs and benefits of this merger, based on solid financial and economic evidence.

In April, the Governance Commission for Government-Owned and Controlled Corporations submitted to the Office of the President its study, which stated that the Landbank-DBP merger couldTiñga said that since the two state-owned banks were created by acts of Congress, the merger required an enabling law.

Having all the financial resources of the national government, its agencies, GOCCS, government instrumentalities, and local government units in one official depository bank may be more perilous than beneficial for the country Diokno had said that President Ferdinand Marcos Jr. had given the thumbs up for the merger of the two state-owned banks, which he said would result in P5.2 billion per year worth of savings for the government.

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Landbank-DBP merger needs law, not just EO, says lawmakerThe proposed merger of state-run banks Development Bank of the Philippines and the Landbank can only be done by congressional action, and not by mere executive order, Albay Rep. Edcel Lagman said in a statement. | jiandradeINQ /PDI
Source: inquirerdotnet - 🏆 3. / 86 Read more »

DBP accuses DOF of railroading LBP mergerThe Development Bank of the Philippines (DBP), in a statement issued Monday, May 8, expressed 'deep concern' about the Department of Finance (DOF)'s pronouncement that the proposed merger with the Landbank of the Philippines will be “completed by November”.
Source: manilabulletin - 🏆 25. / 51 Read more »

Landbank-DBP merger needs law, not just EO, says lawmakerThe proposed merger of state-run banks Development Bank of the Philippines and the Landbank can only be done by congressional action, and not by mere executive order, Albay Rep. Edcel Lagman said in a statement. | jiandradeINQ /PDI
Source: inquirerdotnet - 🏆 3. / 86 Read more »

DBP accuses DOF of railroading LBP mergerThe Development Bank of the Philippines (DBP), in a statement issued Monday, May 8, expressed 'deep concern' about the Department of Finance (DOF)'s pronouncement that the proposed merger with the Landbank of the Philippines will be “completed by November”.
Source: manilabulletin - 🏆 25. / 51 Read more »