2 gov't-owned banks to merge

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.