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President Rodrigo Duterte gave green light to the merger of state-controlled banks Land Bank of the Philippines (Landbank) and United Coconut Planters Bank (UCPB).
With the signing of Executive Order (EO) No. 142 last June 25, it paved the way for the merger of LBP and UCPB which will eventually make Landbank as the Philippines’ second-largest bank in terms of assets and deposits.
The EO noted that the merger would “significantly strengthen the capability to deliver financial services to the coconut industry and the entire agricultural sector, contribute to economic sufficiency, foster countryside development and financial inclusion, and promote stability in the country’s banking system.”
“The merger of the UCPB with the LBP is hereby approved, with the LBP as surviving entity, subject to the requisite approvals from the Securities and Exchange Commission, and to the conditions and limitations under RA (Republic Act) 11524 and RA 11232 or the Revised Corporation Code of the Philippines,” the order stated.
Meanwhile, a source of THEPHILBIZNEWS who spoke on condition of anonymity for lack of authority to discuss the plans said, “Since Landbank will take over the UCPB and all its assets and liabilities, there will be inevitable redundancy program for the personnel of UCPB. But they should not worry, because they will be properly compensated and given the separation pay. On the other hand, there will also some of the personnel will be absorbed or rehire, depending on the positions, capability and job descriptions.
The EO 142 which was released by the Palace on Tuesday, takes effect immediately upon publication in the Official Gazette or a newspaper of general circulation but still subject to the approval of the Securities and Exchange Commission and conditions under the Revised Corporation Code.