Zamora, Patricia Nicole R.

4BSA

2 gov't-owned banks to merge

(philstar.com) | Updated March 19, 2015 - 8:00pm
MANILA, Philippines (Xinhua) - A congressional panel in the House of Representatives today
voted for the approval of the merger of two government-owned banks.

Batangas Province Representative Nelson Collantes, chairman of the House committee on

banks and financial intermediaries as well, said panel members had voted unanimously for the
merger of the Development Bank of the Philippines and the Land Bank of the Philippines with
the latter as the surviving entity.

Collantes said the merger seeks to fuse the two banks financial capabilities, improve the
delivery of services, and achieve economic efficiency.

"The merger will improve the balance sheet capabilities of the merged bank, thus resulting in a
stronger bank which will have a competitive edge over other banks both in the domestic and
global markets," Collantes said.

The lawmaker said the consolidated entity would be more effective, efficient and sustainable in
carrying out the mandates of both banks, particularly in anticipation of the wave of foreign banks
that may enter the Philippine market upon the Asean integration in 2015.

The House of Representatives approved the merger of two government-owned banks

which is the Development Bank of the Philippine and the Land Bank of the Philippines and Land
Bank as the surviving entity. According to the Representative Collantes, merger will help the
banks improve financial capabilities and achieve economic efficiency. Merger occurs when two
companies combine and only one of entity survives.