Finance Secretary Margarito B. Teves said the Land Bank of the Philippines and Development Bank of the Philippines would go back to Congress soon to initiate capital-expansion efforts, which may include merging both banks.
"The merger under our bank charters is one of the options we can take to improve our capital," said Teves. "For it to happen, both Land Bank and DBP would have to go back to Congress."
Teves said foreign banks and multilateral agencies such as the Asian Development Bank, the World Bank and Japan Bank International Corp. have been invited to take a look on the proposals to improve Land Bank’s capital.
"It is possible to merge capitals, which would make Land Bank the third biggest bank. (The proposal) is advantageous because it will expand our reach (countryside lending)," Teves added.
Land Bank has a capital base of
P20 billion while DBP has P18 billion in resources. The biggest bank is Metrobank and BPI with P40 billion each.
Land Bank has a proposed bill pending in Congress seeking to amend the bank charter. "The next step is to convinced policy makers and legislators. Unfortunately congress has a tight schedule right now. In the meantime (since legislators are busy) we have sounded off our proposals to the industry," he said. (LCC)
