MANILA – The completion of the planned merger between the Land Bank of the Philippines (Landbank) and the Development Bank of the Philippines (DBP) is expected to be completed in the first half of 2024, Department of Finance (DOF) Secretary Benjamin Diokno said.
This is a slight delay compared to the end of 2023 original target.
"We have submitted the EO [Executive Order] to Office of President. It's going through what's called a CSW [complete staff work]. We expect that to be approved soon," Diokno said in his weekly press chat.
Based on the original schedule, after the issuance of the EO, a joint crafting and approval of the Operational Integration Plan should be completed in September.
This will be followed by the approval of the Bangko Sentral ng Pilipinas' Monetary Board in October, before the final legal merger between Landbank and DBP by November.
Diokno however said that BSP's approval will likely be secured by the end of the year.
"I think it will be approved by the BSP before the end of the year," he said.
Diokno said the merger would "go through a process."
"It has to go through to a process, so the full completion is around middle of next year. That's a reasonable timetable," said Diokno.
The finance chief earlier 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 (GOCCs), government instrumentalities, and local government units (LGUs).
He said 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.
DOF data earlier showed that the consolidated bank will have an estimated asset size of about PHP4.18 trillion, and a deposit base amounting to PHP3.59 trillion.
After the merger, Landbank will be the surviving entity given its higher authorized capital stock of PHP800 billion. (PNA)
