Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
____________________________________________________________________ 
Introduced by HON. GUS S. TAMBUNTING 
AN ACT MERGING THE DEVELOPMENT BANK OF THE PHILIPPINES 
AND LAND BANK OF THE PHILIPPINES 
EXPLANATORY NOTE 
This bill proposes the merger of two government-owned banks, the Development Bank 
of the Philippines (DBP) and the Land Bank of the Philippines (LBP), into a single entity, 
the “One Nation Bank”. The proposed bill seeks to provide the legal framework for the 
merger and outlining the necessary steps for its execution. 
The DBP and LBP were created to fulfill different but complementary mandates, with 
the former primarily providing banking services for small and medium enterprises 
(SMEs) in the agricultural and industrial sectors, and the latter financing the acquisition 
and distribution of agricultural estates and serving as the financial intermediary for the 
Comprehensive Agrarian Reform Program (CARP). The merger of DBP and LBP is 
aimed at achieving greater efficiency, synergy, and competitiveness in the delivery of 
banking services to priority sectors such as agriculture/agrarian reform, SMEs, 
infrastructure, and public services. By eliminating unnecessary duplication and overlap 
in functions, the merger will result in a stronger, more efficient, and competitive 
universal development bank. This will enable the bank to better fulfill its mandate of 
providing banking services to propel countryside development and contribute to 
sustainable and inclusive growth. Moreover, the merger will provide better access to 
quality financial services in unbanked and underserved areas, which will help promote 
financial inclusion and reduce poverty. 
The bill mandates the Governance Commission for GOCCs to implement the merger, 
in consultation with the Department of Finance and Bangko Sentral ng Pilipinas. All 
other government offices and agencies are also directed to promptly take necessary 
actions to fully implement the provisions of this bill within one (1) year from its effectivity. 
The bill also provides for the reorganization of the merged banks, subject to the 
principles and standards of the GOCC Governance Act of 2011, and the condition that 
all employees of the constituent banks who will be retained under the reorganization 
plan shall not suffer any break in service or tenure, or any diminution of salaries and 
lawful benefits. 
March 17, 2023
11:44 am
7685


This bill aims to rationalize the operation of government agencies and government 
financial institutions, strengthen their financial capabilities, and improve the delivery of 
services. It recognizes the importance of strengthening GFIs in preparation for regional 
economic integration, encourages sustainable growth and development in capital and 
credit facilities of GFIs for the benefit and protection of the public, and ensures that the 
social mandate of providing assistance to priority sectors is continuously fulfilled. 
In view of the foregoing, it is hoped that this bill will be favorably considered and enacted 
into law. 
REP. GUS S. TAMBUNTING 
2nd District, Parañaque City 


1 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
______________________________________________________________________ 
Introduced by HON. GUS S. TAMBUNTING 
______________________________________________________________________ 
AN ACT MERGING THE DEVELOPMENT BANK OF THE PHILIPPINES 
AND LAND BANK OF THE PHILIPPINES 
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
assembled: 
Section 1. Short Title. – This law shall be known as “The LBP-DBP Merger Act”. 
Section 2. Declaration of Policy. – It is hereby declared the policy of the State to promote the 
efficient delivery of banking services and to strengthen the banking system in order to support 
economic development. To achieve this policy, it is necessary to merge the Land Bank of the 
Philippines and Development Bank of the Philippines to create a stronger, more efficient, and 
more responsive financial institution that can better serve the needs of the country and its 
people. The merged entity shall remain committed to the development of agriculture, industry, 
and other strategic sectors, and shall be guided by the principles of public accountability, 
transparency, and good governance. 
Section 3. Merger of Land Bank of the Philippines and Development Bank of the Philippines. 
– (a) The Land Bank of the Philippines and Development Bank of the Philippines shall be
merged into a single entity, which shall be known as the “One Nation Bank”.
(b) The One Nation Bank shall have the power to exercise all the rights and privileges of the
Land Bank of the Philippines and Development Bank of the Philippines, including but not
limited to the power to grant loans, receive deposits, and engage in other banking and
financial activities as may be allowed by law, the existing charters of constituent entities, and
regulatory issuances of the Bangko Sentral ng Pilipinas and the Department of Finance. It
shall have all the consolidated powers, rights, immunities, privileges, and liabilities of Land
Bank of the Philippines and Development Bank of the Philippines. Moreover, it shall have all
the powers, rights, immunities, privileges, and liabilities of a universal bank as defined by
general laws and regulations on banking.
Section 4. Assets, Liabilities, and Capital. – (a) The merger shall be accomplished through 
the transfer of all assets, liabilities, and capital of the Development Bank of the Philippines 
and of the Land Bank of the Philippines to the One Nation Bank. 
7685


2 
(b) The merged entity shall have a minimum authorized capital stock of One Hundred Billion 
Pesos (PhP100,000,000,000), which shall be subscribed and paid-up by the National 
Government. The capital stock may be increased from time to time as may be necessary to 
carry out the objectives of the merged entity. 
 
Section 5. Management and Organization. – (a) The One Nation Bank shall have a unified 
management and organizational structure, and shall operate under the combined charters of 
the Development Bank of the Philippines and of the Land Bank of the Philippines, subject to 
such implementing guidelines as may be issued by the Governance Commission for GOCCs. 
 
(b) The merged entity shall be governed by a Board of Directors composed of not more than 
fifteen (15) members, to be appointed by the President of the Philippines, subject to 
recommendation of the Department of Finance and the Governance Commission for GOCCs. 
The Board of Directors shall be responsible for the overall management and direction of the 
merged entity, and shall be guided by the principles of public accountability, transparency, 
and good governance. 
 
Section 6. Personnel and Employees. – The merged entity shall adopt a rationalization plan 
for its personnel and employees to ensure the efficient and effective utilization of the merged 
entity's resources. This plan shall provide for the fair and equitable treatment of all affected 
personnel and employees, and shall take into account the need to abolish duplicate positions 
and achieve operational efficiencies. 
 
Section 7. Operations and Functions. – (a) The merged entity shall have the power to engage 
in all activities and functions that are authorized and regulated by law and by the Bangko 
Sentral ng Pilipinas, including but not limited to accepting deposits, granting loans, investing 
in securities and other financial instruments, and providing other banking and financial 
services. 
 
(b) The merged entity shall be authorized to conduct all the activities and functions that were 
previously authorized and conducted by the Land Bank of the Philippines and Development 
Bank of the Philippines, subject to such rules and regulations as may be promulgated by the 
Bangko Sentral ng Pilipinas. 
 
(c) The merged entity shall be required to comply with all applicable laws, rules, and 
regulations, including but not limited to banking laws, securities laws, and anti-money 
laundering laws. 
 
(d) The merged entity shall be required to maintain adequate internal control systems and 
risk management frameworks, to ensure the safety and soundness of its operations and to 
protect the interests of its depositors and other stakeholders. 
 
(e) The merged entity shall be required to submit regular reports on its operations, activities, 
and financial condition, as may be prescribed by the Bangko Sentral ng Pilipinas or other 
regulatory authorities. 
 
(f) The merged entity shall be subject to the supervision and examination of the Bangko 
Sentral ng Pilipinas, and shall cooperate with the latter in the conduct of its supervisory 
functions. 
 
 


3 
 
 
Section 9. Transitory Provisions. – (a) The Board of Directors of the merged entity shall be 
constituted within sixty (60) days from the effectivity of this Act. 
 
(b) The Board of Directors shall appoint an interim management team that shall oversee the 
merger process and ensure the efficient and effective integration of the Land Bank of the 
Philippines and Development Bank of the Philippines, in coordination with the Governance 
Commission for GOCCs. 
 
(c) The interim management team and Governance Commission for GOCCs shall be 
responsible for the preparation and implementation of a transition plan that shall guide the 
merger process and ensure the continuity of operations and services of the Land Bank of the 
Philippines and Development Bank of the Philippines. 
 
(d) The interim management team and Governance Commission for GOCCs shall have the 
power to undertake such actions and measures as may be necessary or desirable to effect 
the merger and ensure the efficient and effective operation of the merged entity. 
 
(e) All agreements, contracts, and obligations entered into by the Land Bank of the Philippines 
and Development Bank of the Philippines prior to the effectivity of this Act shall be assumed 
and honored by the merged entity, subject to the terms and conditions of such agreements, 
contracts, and obligations. 
 
(f) The personnel and employees of the Land Bank of the Philippines and Development Bank 
of the Philippines shall be deemed to have been transferred to the merged entity, without 
interruption of their employment, and shall continue to enjoy the same rights and privileges 
as they previously enjoyed, until the abolition of certain duplicate functions and positions 
pursuant to the implementation and effectivity of the rationalization plan in Section 6. 
 
(g) All pending legal actions, suits, or proceedings involving the Land Bank of the Philippines 
and Development Bank of the Philippines shall be continued by or against the merged entity, 
as the case may be. 
 
(h) The Bangko Sentral ng Pilipinas and the Governance Commission for GOCCs, in 
consultation with the Department of Finance, shall issue such rules and regulations as may 
be necessary to implement the provisions of this Act, and to ensure the efficient and effective 
operation of the merged entity. 
 
Section 10. Separability Clause. – If any provision of this Act is declared invalid or 
unconstitutional, the other provisions not affected thereby shall remain in full force and effect. 
 
Section 11. Repealing Clause. – All laws, decrees, executive orders, rules, and regulations 
or parts thereof which are inconsistent with the provisions of this Act are hereby repealed or 
modified accordingly. 
 
Section 12. Effectivity. – This Act shall take effect fifteen (15) days after its publication in at 
least two (2) national newspapers of general circulation. 
 
Approved,