Logos of Landbank and UCPB
MANILA, Philippines — Following their merger that took effect on March 1, the state-run Land Bank of the Philippines (Landbank) will absorb 2,500 employees of the dissolved United Coconut Planters Bank (UCPB).
In a Feb. 28 memorandum order issued by the Governance Commission for Government Owned or Controlled Corporations (GCG) but made public only on Friday, the agency overseeing GOCCs also approved 11 new positions under Landbank’s digital banking sector, which will be headed by an executive vice president.
The GCG board composed of its chair Samuel Dagpin Jr. as well as commissioners Michael Cloribel and Marites Doral also abolished Landbank’s card and e-banking group plus its e-banking support unit, while renaming four other units to reorganize the lender’s digital banking sector.
In turn, the GCG approved creating 2,500 additional positions in Landbank, which will be filled up by former UCPB employees, among them 103 positions in the agricultural and development lending sector; 70 in the corporate services sector; and 111 in the office of the president and board of directors.
The most new positions in Landbank up for grabs among ex-UCPB employees will be in the branch banking sector, with 1,711; 493 in the operations sector; two in the treasury and investment banking sector; and 10 in UCPB subsidiaries to be retained by Landbank.
Landbank’s reorganization was set into motion by Executive Order (EO) No. 142 issued by President Duterte last year to merge it with ailing UCPB, resulting in what’s now the Philippines’ second-biggest bank in terms of assets.
The GCG said that following the articles and plan of merger executed by Landbank and UCPB in December of last year, and then the Securities and Exchange Commission’s (SEC) certification last January, the Department of Finance (DOF), which oversees both banks, endorsed Landbank’s then-proposed organizational realignment and rationalization plan in mid-January.
“The GCG determined that it is in the best interest of the state and the public to authorize the creation of additional positions for Landbank to promote better, effective, and efficient services to the public,” it said in its interim approval to address Landbank’s manpower requirement.
“The creation of additional 2,500 positions is coterminous with the approval of Landbank’s reorganization by the GCG… The creation of positions is without prejudice to the final approval of the GCG of the reorganization of Landbank. The funds for the purpose shall be taken fully from the corporate funds of the Landbank, as approved by its governing board, and no budgetary support will be provided by the national government for personnel services,” it added.
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