A resolution requesting an investigation into the "potential risks" associated with the proposed merger of the Landbank of the Philippines and the Development Bank of the Philippines (DBP) has been filed in Senate.

Senator Sherwin Gatchalian filed a proposed Senate Resolution 697, which would change the law and assess the propriety, viability, compliance, and potential repercussions of such a merger.

"Weigh in on whether the merger of these two government banks will better serve the country’s development needs in the agriculture, infrastructure, and industrial sectors, particularly among micro, small, and medium enterprises, and to ensure that the proposed merger will not dilute the government’s focus on developing these target sectors," the lawmaker said.

As stated in the resolution, the Senate needs to look into concerns about the potential risks the contemplated merger may bring to the stability of the banking industry and the economy, as the consolidation of these banks to form the largest bank in the country could concentrate risks and increase vulnerability to financial market stress and economic shocks.