President Benigno Aquino III has recently approved the merging of two state-run banks: The Land Bank of the Philippines and the Development Bank of the Philippines. Landbank will serve as the surviving entity of the two. This merger was approved of through Executive Order No. 198.
The President has cited the two banks’ need for strengthened financial capabilities, improvement of services delivery, achievement of economic efficiency, and the support of the government’s development thrust. As the surviving entity, Landbank needs greater capital to absorb DBP. The Department of Finance and Department of Budget and Management is to provide Landback with a capital infusion of at least Php 30 billion.
