Gatchalian seeks Senate inquiry into proposed Landbank-DBP merger

Senator Win Gatchalian wants an inquiry into the proposed merger between the Landbank of the Philippines (Landbank) and the Development Bank of the Philippines (DBP) which is likely to be finalized by the middle of 2024.

"There is a need for the Senate to weigh in on whether the merger of these two government banks will better serve the country's development needs in the agriculture, infrastructure, and industrial sectors, particularly among the micro-small-and-medium enterprises, and to ensure that the proposed merger will not dilute the government's focus on developing these target sectors," Gatchalian said, as he filed proposed Senate Resolution No. 697.

"The Senate also needs to look into concerns on the potential risks the contemplated merger may bring to the stability of the banking industry and the economy, as the consolidation of these banks to form the largest bank in the country could concentrate risks and increase vulnerability to financial market stress and economic shocks," Gatchalian emphasized.

It can be recalled that Finance Secretary Benjamin Diokno in March this year proposed the merger between Landbank and DBP to create a bigger, stronger, and more resilient bank that can better serve the country's development needs.

Based on figures as of December 31, 2022, the proposed merger will create the largest banking institution in the Philippines with an estimated asset size of about P4.18 trillion once implemented. This is expected to eliminate redundancies and inefficiency in operations, resulting in savings projected at P5.3 billion yearly.

According to Gatchalian, the Government Commission for GOCCs (GCG), in a report submitted to the Office of the President, affirmed that the proposed merger does not require new legislation and that existing laws had given the President the authority to implement such a merger.

In his filed resolution, Gatchalian said that the government should ensure that the operations of GOCCs are rationalized and monitored centrally so that government assets and resources are used efficiently.

Gatchalian gustong kilatisin ang panukalang Landbank-DBP merger

Nais ni Senador Win Gatchalian na imbestigahan ang panukalang pagsasanib sa pagitan ng Landbank of the Philippines (Landbank) at Development Bank of the Philippines (DBP) na posibleng maisakatuparan sa kalagitnaan ng 2024.

"Kailangan ng Senado na pag-isipan ang epekto ng pagsasanib ng dalawang bangko at kung ito ay makakabuti sa pag-unlad ng agrikultura, imprastraktura, at mga micro-small-and-medium enterprises. Dapat matiyak natin na ang panukala ay sasang-ayon sa mga target ng pamahalaan," ayon kay Gatchalian, kasunod ng paghain niya ng Senate Resolution No. 697.

"Mahalaga ring tingnan ng Senado ang mga potential risk sa katatagan ng industriya ng pagbabangko at ng buong ekonomiya, dahil ang merger ng Landbank at DBP na siyang magiging pinakamalaking bangko sa bansa ay posibleng magdulot ng financial market stress at economic shocks," diin ni Gatchalian.

Matatandaan na iminungkahi ni Finance Secretary Benjamin Diokno noong Marso ng taong ito ang pagsasanib sa pagitan ng Landbank at DBP upang lumikha ng mas malaki at mas matatag na bangko na layong magpaunlad ng bansa.

Batay sa mga datos noong Disyembre 31, 2022, ang naturang merger na sinasabing pinakamalaking banking institution sa bansa ay may tinatayang laki ng asset na humigit-kumulang P4.18 trilyon. Dahil dito ay nakikitang maaalis ang redundancies at inefficiency sa mga operasyon na magreresulta sa tinatayang savings na P5.3 bilyon taun-taon.

Ayon kay Gatchalian, pinatunayan ng isang ulat ng Government Commission for GOCCs (GCG) na isinumite sa Office of the President na ang panukalang pagsasanib ng dalawang bangko ay hindi na nangangailangan ng bagong batas.

Sa kanyang inihain na resolusyon, sinabi ni Gatchalian na dapat tiyakin ng gobyerno na ang mga operasyon ng GOCCs ay makatwiran at nababantayan upang ang mga asset at resources ng gobyerno ay nagagamit nang mahusay.