The Department of Finance (DOF) is set to bolster the financial stability of the state-owned Development Bank of the Philippines (DBP) and expand its role in national development under a proposed new charter.
The legislation, approved on third and final reading in both houses of Congress, would designate the finance secretary as the ex-officio chairperson of the DBP Board, a move aimed at strengthening government oversight and aligning the bank’s operations with economic priorities.
“The reforms in its proposed new charter, including the Secretary of Finance’s assumption of the role of Chair of the Board, are precisely made towards strengthening its financial stability and capacity to drive national progress and uplift the lives of more Filipinos,” Finance secretary Ralph Recto said in a statement.
The bill seeks to increase DBP’s authorized capital stock from P35 billion to P300 billion and allows the bank to offer up to 30% of its shares to the public, while ensuring the national government retains at least 70%.
Under the proposed charter, DBP’s mandate will be expanded to finance government programs in infrastructure, education, healthcare, housing, and environmental protection. It will also support competition in financial markets and financial sector development.
DBP, the country’s eighth-largest bank by assets, is designated as the Philippines’ Infrastructure Bank, with 146 branches and branch-lite units serving underserved and unbanked areas. Its charter was last amended in 1998 under Republic Act 8523.
The proposed reforms would also add the National Economic and Development Authority (NEDA) Secretary as an ex-officio board member and appoint three independent directors.
The DOF said the changes would enable DBP to expand credit assistance to priority sectors and enhance its capacity to fund the medium- and long-term needs of agricultural and industrial enterprises.
