“Assessing the Merger between LBP and DBP: A Study Conducted by GCG”

The Governance Commission for Government-Owned or -Controlled Corporations (GCG) will submit recommendations to the Philippine presidential palace about the proposed merger between Land Bank of the Philippines (LBP) and the Development Bank of the Philippines (DBP). According to GCG Chairman Alex Quiroz, legal issues were raised by DBP representatives during a meeting. GCG will have to look into the specifics of the merger as it involves two major, state-owned banks. The current government said that the majority of the banks’ clients favour it. The LBP and DBP have been named as sources of start-up funds for the proposed Maharlika Investment Fund. The merger would result in the country’s largest bank and help the DBP avoid the need to recapitalize.