A good idea.

That's how Albay 2nd district Rep. Joey Salceda described the proposal from Malacañang to merge government financial institutions (GFIs) the Land Bank of the Philippines (LBP) and the Development Bank of the Philippines (DBP).

Salceda said in a statement Wednesday afternoon, March 29, that this merger only needs a good execution plan. The foremost consideration is the law that will put it in effect.

“In principle, it’s a good idea to combine these banks to make them more resilient to global shocks. We just need to work out how they can continue to fulfill their respective mandates," said the chairman of the House Committee on Ways and Means.

Asked about the need for legislation, the Bicolano said: “Yes, you need a law for that, since LBP has its own legislated charter with its own specific mandates. Currently, the legislative agenda is to revise the LBP charter to increase its capitalization and allow it to list.”

Legislation is a matter of Congress, which composed of the House of Representatives and the Senate.

And then there are the other considerations that Salceda wants President Ferdinand "Bongbong" Marcos Jr. to look into.

“I would ask the Executive to seriously study who will perform the original mandates of the respective banks once the merger takes place," he said.

"The condonation of ARB (agrarian reform beneficiaries) loans allows the Landbank significant organizational flexibility, and having one bigger government depository is generally good for cash consolidation among the national government and LGUs (local government units), but there are also concerns that the mandate of the LBP to lend to farmers could get diluted by the merger. So, the economic managers need to present a strategy for performing those roles,” he explained.

“With that strategy complete and presented, I am sure the proposal will gain support in the House,” Salceda said.

House Speaker Martin Romualdez is yet to comment on the proposed merger of the two GFIs.