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Merger plans between two major Philippine state banks called off



The planned merger between the Development Bank of the Philippines (DBP) and the Land Bank of the Philippines (LANDBANK) has been canceled due to their different mandates, according to DBP President and CEO Michael O. de Jesus and Finance Secretary Ralph G. Recto. The decision was made as both state-run lenders serve unique functions that benefit the country’s interests. Initially, the merger aimed to create the country’s largest bank in terms of assets, with significant expected savings for the government. However, concerns were raised about the potential risks of creating a too-big-to-fail institution. Both banks have distinct roles, with LANDBANK focusing on countryside development and DBP on supporting agricultural and industrial enterprises. Despite the cancellation, both banks will continue their contributions to the Maharlika Investment Fund as planned.

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