MANILA – The government has dropped plans to merge the Land Bank of the Philippines and the Development Bank of the Philippines, the finance department said Tuesday.
The merger would have resulted in the country’s second-largest bank in terms of assets. However Finance Secretary Carlos Dominguez said that there was no need to combine two lenders that were created for different purposes.
“Being number one or number two doesn’t matter” and what is important is that the two banks to perform their respective functions efficiently, Dominguez said in a statement.
Former President Benigno Aquino issued an executive order for the merger to widen access to credit on the countryside.
Dominguez said the merger should have been done through a law, not executive action.