BSP: Still no application filed for LBP-DBP merger

MANILA - Bangko Sentral ng Pilipinas (BSP) deputy governor Nestor Espenilla said the Governance Commission for Government-owned and -controlled Corporations (GCG) has yet to give them an application for the merger of Land Bank of the Philippines (LBP) with Development Bank of the Philippines (DBP).

Espenilla said, while the GCG has inquired about the requirements for the application, it has yet to submit one.

"These are not box-ticking exercises. Mergers, especially of big banks, are complex transactions and BSP carefully reviews all facets," said Espenilla.

He said once they receive the application, the BSP will need a a minimum of two months to evaluate it, as the merger will be a complex transaction.

President Aquino approved the merger deal in February, and the GCG said it hopes to complete it in a year's time.

Land Bank will be the surviving entity after the merger, and it is expected to be the second largest bank in the Philippines in terms of assets and deposits, and fourth largest in terms of loans and capital.

The GCG said that aside from the BSP, they are also seeking approval of the merger from the Philippine Deposit Insurance Corporation, and the newly formed Philippine Competition Commission.