MANILA – The Department of Finance (DOF) is set to take a more active role in guiding the Development Bank of the Philippines (DBP) towards greater financial stability, according to Finance Secretary Ralph Recto. The proposed changes to the DBP’s charter, recently passed in both houses of Congress, will enable the DOF to better support the bank’s mission of fostering economic growth through aiding agricultural and industrial sectors.
Recto emphasized that the new charter, which includes the Finance Secretary taking on the role of Chair of the DBP Board, is designed to enhance the bank’s financial strength and its ability to contribute to national development and improve the quality of life for Filipinos. Currently, the DOF does not have a seat on the DBP Board, but the new charter will change this by making the Finance Secretary the ex-officio chairperson, ensuring governmental oversight and alignment with the bank’s developmental goals.
The proposed charter also includes the Secretary of the National Economic and Development Authority as an ex-officio member and adds three independent directors to the board. It expands the DBP’s scope to include support for government initiatives aimed at boosting economic growth and productivity, such as the development of digital and physical infrastructure, business expansion, and support for micro, small, and medium enterprises (MSMEs). Additionally, the DBP will focus on high-impact programs in education, health care, housing, social services, and environmental protection.
The new charter mandates the DBP to implement government policies on priority area financing, enhance competition in financial markets, and promote financial sector development. To bolster its financial stability, the DBP is authorized to offer up to 30 percent of its shares to the public, which will help raise capital to support its expanded mandate and encourage public involvement. The national government will maintain at least 70 percent ownership to ensure control over the bank.
Furthermore, the bill increases the DBP’s authorized capital stock from PHP35 billion to PHP300 billion, allowing it to extend more credit assistance to priority sectors.