Landbank-DBP merger completed by Nov: DOF

The Department of Finance (DOF) on Friday said the final legal merger between the Land Bank of the Philippines (Landbank) and the Development Bank of the Philippines (DBP) is targeted to be completed by November this year.

“Following the approval of the GCG (Governance Commission for Government Owned or Controlled Corporations), we now await the issuance of an Executive Order sometime this month,” Finance Secretary Benjamin Diokno said in a briefing.

Cs), government instrumentalities, and local government units (LGUs).

He noted that the merger can generate up to PHP975 million in savings per year through the consolidation of branch operations, on top of the expected reductions in personnel expenses.

The Finance department earlier disclosed that the consolidated bank will have an estimated asset size of about PHP4.18 trillion, and a deposit base amounting to PHP3.59 trillion.

She said this is a unique business model and the first of its kind in the world with the goal of creating sustainable and affordable communities that benefit both the environment and fellow Filipinos.

Kumar said they are excited to partner with Pag-IBIG Fund to bring their expertise as being the premier housing financing institution in the Philippines and their wealth of experience in working to provide decent and affordable housing in the country.

“There will be a joint crafting and approval of the Operational Integration Plan in September, followed by the approval of the Monetary Board in October, before the final legal merger between Landbank and DBP by November,” he said.

Diokno said the consolidated bank will be in the best position to serve as the sole authorized government depository bank for all National Government agencies, Government Owned or Controlled Corporations (GOC-

After the merger, Landbank will be the surviving entity given its higher authorized capital stock of PHP800 billion.

On the issue of retrenchments resulting from the merger, Diokno assured that they will work closely with the two banks “to ensure that personnel decisions are consistent with our objective to enhance the bank’s efficiency and effectiveness.”

“It is important that those who will be separated receive a fair package of benefits in recognition of their valuable service to the government,” he said.