DBP eyes renewed push for amendments in corporate charter

STATE-OWNED Development Bank of the Philippines (DBP) is working closely with the Department of Finance (DoF), state regulators and legislators in introducing reforms in its 26-year-old charter to cater to the demands of an ever-changing market and rapidly evolving economic landscape, DBP President and CEO Michael de Jesus said.

He said DBP hopes to hike its authorized capital stock from the current P35 billion to P300 billion to enable it to broaden its credit assistance to priority sectors and broaden its menu of financial products and services.

“We are working hand-in-hand with all stakeholders, especially the DoF in ensuring that DBP would be able to finance more developmental projects, especially in the countryside. These amendments are needed to boost our financial position and make the bank responsive to the evolving needs of our clients,” he said.

DBP is the eighth largest bank in the country in terms of assets and has been designated as the Infrastructure

Bank by the National Government. It has a branch network of 146 fullfledged branches and branch lite units, most of which are located in underserved and unbanked areas of the country.

DBP’s charter was last amended in 1998 through Republic Act 8523, which raised the bank’s authorized capital stock from P5 billion to P35 billion. The bank was originally founded as the Rehabilitation Finance Corp., which was part of mechanisms to jumpstart reconstruction and economic revival after the devastation of World War 2.

De Jesus said several bills have been filed and pending in the Committee on Banks and Financial Intermediaries of the House of Representatives, while a similar version is expected to be filed in the Senate.

He said the proposed changes would allow DBP to engage in traditional and nontraditional modes of financing businesses while enhancing its compliance with risk-based banking laws and regulations.