Philippines Scraps Plan to Merge Two Largest State Banks (1)

The Philippines is canceling a plan to merge its two largest government-owned lenders, reversing an initial proposal approved by President Ferdinand Marcos Jr. last year.

Finance Secretary Ralph Recto confirmed Monday that the plan to merge the Development Bank of the Philippines and the Land Bank of the Philippines won’t push through. “They have separate mandates,” he said in a mobile-phone message.

DBP President and CEO Michael de Jesus told reporters earlier in the day that the merger may not continue. LandBank hasn’t commented on the latest developments.

“There’s really no benefit to be gained in combining the two institutions. ...