A former Land Bank of the Philippines (LBP) official opposed the proposed plan of the government to merge the state-run LBP and the Development Bank of the Philippines (DPB), saying the move will only create disunity and disenfranchisement.
Senator Riza Hontiveros likewise opposed the merger plan.
In a statement, former LBP vice president Pablito Malabanan Villegas said the proposed merger will need to pass through amendment of, or creation of new charters, that will have to pass bicameral legislation.
He also said the LBP and the DBP have separate and distinct mandated missions that they have to do.
He explained that the LBP was focused on financing acquisition of land estates and helping small farmers and fisherfolk, while the DBP provides money for infrastructure, logistics, and commerce projects.
“LBP is for the provision of timely and adequate financial and technical assistance to the Agri-agra sector while DBP is more on overall national development financing focused on infrastructure and industrialization outside and within agriculture as well as medium to Large industries.. DBP is supposed to handle big ticket development loans and PPP deals,” Villegas said.
“These will create not only uncertainties and unwanted consequences in their operations, but also unnecessary delays in their financing of socially and economically desirable programs and projects,” he added.
He also criticized the logic of Finance Secretary Benjamin Diokno’s idea that the creation of LBP-DBP universal bank will be bigger than Banco de Oro “is illogical.”