The Department of Finance (DOF) is pushing for amendments to the charters of the Land Bank of the Philippines and the Development Bank of the Philippines (DBP) to strengthen their financial position and expand their capacity to serve Filipinos.
A key feature of these proposed amendments is to allow both banks to access private capital by offering a portion of their shares to the public. This move aims to reduce their reliance on government support and enhance their ability to fund key development projects.
These amendments will empower LandBank and DBP to become more self-sufficient and agile in responding to the evolving needs of the Philippine economy, said Finance Secretary Ralph Recto.
Furthermore, the DOF is proposing to streamline the bond issuance process for both banks, enabling them to access capital more efficiently.
The DOF emphasized that the strong financial performance of both banks, as evidenced by their robust capital adequacy ratios, provides a solid foundation for these proposed reforms.
LandBank and DBP play crucial roles in supporting key sectors of the Philippine economy, including agriculture, infrastructure, and micro, small, and medium enterprises.
