Approving The Merger Of The Development Bank Of The Philippines And The Land Bank Of The Philippines
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Approving The Merger Of The Development Bank Of The Philippines And The Land Bank Of The Philippines
Executive Order No. 198
February 4, 2016
Case Overview and Summary
Summary of Executive Order No. 198Declaration of Policy (Section 1):
- Recognizes the need to rationalize government agencies and financial institutions.
- Aims to strengthen financial capabilities, improve service delivery, achieve economic efficiency, and support government development thrust.
- Recognizes the importance of strengthening government financial institutions for regional economic integration.
- Encourages sustainable growth and development of capital and credit facilities.
- Ensures continuous assistance to priority sectors like farmers, fisherfolk, agrarian reform beneficiaries, and SMEs.
Operational Merger of DBP and LBP (Section 2):
- Approves the operational merger of DBP and LBP through the transfer of DBP's assets and liabilities to LBP as the surviving entity.
- Subject to the written consent of the Philippine Deposit Insurance Corporation and approval of the Bangko Sentral ng Pilipinas.
Increase in Authorized Capital Stock of LBP (Section 3):
- Approves the increase in LBP's authorized capital stock to P200,000,000,000.00, divided into 2 billion common shares with par value of P100.00 per share.
- Directs the DOF and DBM to provide a capital infusion to LBP of at least P30,000,000,000.00, to be sourced from existing funds or included in the General Appropriations Act.
Implementation of the Merger (Section 4):
- The GCG shall implement the merger and determine the extent and modes of asset and liability transfer, in consultation with DBP and LBP.
- All government offices and agencies are directed to take necessary actions to fully implement the provisions within one (1) year from effectivity.
Reorganization of the Merged Banks (Section 5):
- The GCG shall undertake, approve, and implement a reorganization plan and compensation and position classification system for the merged banks.
- Employees retained shall not suffer any break in service, tenure, or diminution of salaries and lawful benefits.
- Separated personnel shall be entitled to a Merger Incentive Pay (MIP) based on years of government service and basic monthly pay.
Repeal, Separability, and Effectivity (Sections 6-8):
- Repeals inconsistent issuances, provides for separability, and sets the immediate effectivity upon publication in a newspaper of general circulation.
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Executive Issuances
Executive Orders
merger
Development Bank of the Philippines
Land Bank of the Philippines
government-owned or controlled corporations
economic development
rationalization
asset transfer
capital increase
reorganization
separation benefits
merger incentive pay
Law
Approving The Merger Of The Development Bank Of The Philippines And The Land Bank Of The Philippines
Executive Order No. 198
•February 4, 2016
MALACAÑAN PALACEMANILA
BY THE PRESIDENT OF THE PHILIPPINES
EXECUTIVE ORDER No. 198
APPROVING THE MERGER OF THE DEVELOPMENT BANK OF THE PHILIPPINES AND THE LAND BANK OF THE PHILIPPINES
WHEREAS, Section 17 of Article VII of the 1987 Constitution provides that the President shall have control of all the executive departments, bureaus, and offices, and that he shall ensure that the laws be faithfully executed;
WHEREAS, Section 2 of Republic Act (RA) No. 10149, otherwise known as the "GOCC Governance Act of 2011," provides that the State recognizes the potential of Government-Owned or -Controlled Corporations (GOCCs) as significant tools for economic development, and that it is the policy of the State to actively exercise its ownership rights in GOCCs to promote growth by ensuring that their operations are consistent with national development policies and programs, and that said operations are rationalized and monitored centrally in order that government assets and resources are used efficiently;
WHEREAS, Section 5(a) of the GOCC Governance Act of 2011 empowers the Governance Commission for GOCCs (GCG) to ascertain whether GOCCs...
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Amends
n/a
Amended by
n/a
Tags
Executive Issuances
Executive Orders
merger
Development Bank of the Philippines
Land Bank of the Philippines
government-owned or controlled corporations
economic development
rationalization
asset transfer
capital increase
reorganization
separation benefits
merger incentive pay
MALACAÑAN PALACEMANILA
BY THE PRESIDENT OF THE PHILIPPINES
EXECUTIVE ORDER No. 198
APPROVING THE MERGER OF THE DEVELOPMENT BANK OF THE PHILIPPINES AND THE LAND BANK OF THE PHILIPPINES
WHEREAS, Section 17 of Article VII of the 1987 Constitution provides that the President shall have control of all the executive departments, bureaus, and offices, and that he shall ensure that the laws be faithfully executed;
WHEREAS, Section 2 of Republic Act (RA) No. 10149, otherwise known as the "GOCC Governance Act of 2011," provides that the State recognizes the potential of Government-Owned or -Controlled Corporations (GOCCs) as significant tools for economic development, and that it is the policy of the State to actively exercise its ownership rights in GOCCs to promote growth by ensuring that their operations are consistent with national development policies and programs, and that said operations are rationalized and monitored centrally in order that government assets and resources are used efficiently;
WHEREAS, Section 5(a) of the GOCC Governance Act of 2011 empowers the Governance Commission for GOCCs (GCG) to ascertain whether GOCCs...
Login to see full content