Proposed changes to the Development Bank of the Philippines (DBP) charter will grant the finance secretary the role of ex-officio chairman, strengthening the DOF's oversight of the state-owned financial institution.
The Department of Finance (DOF) is poised to assume a more direct role in overseeing the Development Bank of the Philippines (DBP) following proposed changes to the state-owned financial institution's charter. These amendments, which have cleared both houses of Congress, grant the finance secretary the position of ex-officio chairman of the DBP board. Currently, the DOF lacks representation on the DBP board, which is currently chaired by businessman Philip Lo.
Finance Secretary Ralph Recto, who will take on the chairmanship once the proposed charter amendments become law, emphasized that these reforms are designed to bolster the DBP's financial stability and its capacity to drive national progress, ultimately improving the lives of more Filipinos. He stated that the DBP has a clear mandate: to stimulate economic growth by providing support for the medium and long-term financing requirements of agricultural and industrial enterprises.The proposed changes also incorporate the secretary of the National Economic and Development Authority — currently held by Arsenio Balisacan — as an ex-officio member and introduce three independent directors. These additions aim to enhance governance and accountability within the DBP. The last amendment to the DBP's charter was enacted in 1998 through Republic Act 8523. With the approval of the new charter, Recto highlighted that the DBP will play a pivotal role in supporting government initiatives that promote economic growth, job creation, and financial inclusion. These initiatives encompass investments in both digital and physical infrastructure, assistance for micro, small, and medium enterprises, and funding for critical sectors such as education, healthcare, housing, social services, and environmental protection.The DBP contributed P25 billion to the Maharlika Investment Fund last year, alongside the Land Bank of the Philippines, which invested P50 billion. This led the DBP to seek an extension of regulatory relief from the Bangko Sentral ng Pilipinas (BSP). The BSP has stated that the DBP will need to provide justification and open its records regarding its request for regulatory relief extension. Recto also emphasized that the bank will be tasked with implementing government policies in priority financing areas, increasing competition within financial markets, and promoting the overall development of the financial sector. To support this expanded mandate, the proposed amendments will authorize the DBP to offer up to 30 percent of its shares to the public. This will provide an avenue for raising additional capital while ensuring that at least 70 percent of the bank's outstanding capital stock remains under government control. The bank's authorized capital stock will also be significantly increased to P300 billion from P35 billion, allowing it to expand credit assistance and financial services to priority sectors
DEVELOPMENT BANK OF THE PHILIPPINES FINANCE DEPARTMENT PHILIPPINE GOVERNMENT BANKING SECTOR ECONOMIC DEVELOPMENT
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