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DBP, Landbank merger not pushing through: Recto

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ANDREA TAGUINES

ABS-CBN News

<div><span data-scayt-word="MALAYSIA—" data-wsc-id="lsk6y960i32picjmu" data-wsc-lang="en_US">MANILA -- The merger between the Development Bank of the Philippines (DBP) and Land Bank of the Philippines is no longer pushing through, Department of Finance Secretary Ralph Recto said Tuesday.</span></div><div><span data-scayt-word="MALAYSIA—" data-wsc-id="lsk6y960i32picjmu" data-wsc-lang="en_US">In an ambush interview, Recto was asked about the merger not pushing through anymore.</span></div><div><span data-scayt-word="MALAYSIA—" data-wsc-id="lsk6y960i32picjmu" data-wsc-lang="en_US">&quot;&#x27;Yes I don’t think so. I think we&#x27;re better off with 2 government depository banks and 2 members in the Maharlika Board,&quot; he said.</span></div><div><span data-scayt-word="MALAYSIA—" data-wsc-id="lsk6y960i32picjmu" data-wsc-lang="en_US">Recto said there seems to be no need for a resolution scrapping the merger.</span></div><div><span data-scayt-word="MALAYSIA—" data-wsc-id="lsk6y960i32picjmu" data-wsc-lang="en_US">&quot;I don’t think there’s a resolution merging it,&quot; he said.</span></div><div><span data-scayt-word="MALAYSIA—" data-wsc-id="lsk6y960i32picjmu" data-wsc-lang="en_US">&quot;To me, it&#x27;s as simple as I think we need 2 government depository banks, <span dir="ltr" id="isPasted">their</span> mandates are totally different. So I think we&#x27;re better off with 2 of them,&quot; he said.</span></div><p>When asked if the scrapped merger has an impact on DBP and Landbank&#x27;s ability to meet the minimum capital requirement set by the Bangko Sentral ng Pilipinas after their mandated contribution to the <span data-scayt-word="Maharlika" data-wsc-id="lsk75vis42r778ssy" data-wsc-lang="en_US">Maharlika</span> Investment Fund, Recto said &quot;I think they&#x27;ll be fine. They will be okay.&quot;<br/> <br/>&quot;If they have dividends this year then those can be part of retained earnings which they can use to increase their capital anyway,&quot; he added.<br/> <br/>The BSP earlier said it is <a data-cke-saved-href="https://news.abs-cbn.com/business/10/11/23/no-application-yet-for-landbank-dbp-merger-bsp" href="news.abs-cbn.com/business/10/11/23/no-application-yet-for-landbank-dbp-merger-bsp" target="_blank">yet to receive</a> an application for the merger of the 2 banks.<br/> <br/>The Landbank is currently the country&#x27;s second largest commercial bank in terms of asset as of September 2023, while DBP is currently number 8.<br/> <br/><strong>-with a report from Jessica Fenol, ABS-CBN News</strong><br/> <br/><em>More details to follow.</em></p><div><br/></div><div><br/></div>

<p>The merger between Landbank and DBP is not pushing through anymore, Secretary Ralph Recto said. </p>

The merger between Landbank and DBP is not pushing through anymore, Secretary Ralph Recto said.