Senator Padilla Calls for Review of OFBank and LandBank Merger Proposal

Senator Robinhood Padilla has introduced a resolution in the Senate to scrutinize the proposed merger between the Overseas Filipino Bank (OFBank) and the Land Bank of the Philippines (LandBank). The senator emphasized the distinct roles of the two banks, with OFBank dedicated to serving overseas Filipino workers (OFWs) and LandBank focused on supporting the agricultural sector. Senate Resolution No. 1281 requests a thorough evaluation by key government bodies, including the Department of Finance, the Governance Commission for Government-Owned or Controlled Corporations, the Bangko Sentral ng Pilipinas, the Department of Migrant Workers, and the Overseas Workers Welfare Administration. The call for review comes after the Department of Finance reportedly endorsed the merger on April 25, 2024. Padilla highlighted that LandBank primarily aids small farmers, fishers, and agrarian reform beneficiaries, while OFWs have specific banking needs that might necessitate a specialized institution. The senator stressed the importance of ensuring that any merger does not undermine the unique mandates of both banks, and aligns with the government’s objectives of inclusive growth and effective financial services.