Press Release - PRIB: Senate OKs new DBP charter

The Senate, on Monday, September 23, 2024, approved, on third and final reading a bill, seeking to augment the capacity of the Development Bank of the Philippines (DBP) to support important sectors and significantly contribute to the economic development of the country.

Sen. Mark A. Villar, author and sponsor of Senate Bill No. 2804 otherwise known as the New DBP Act, said there is an imminent need to amend the DBP's charter.

"One of our advocacies here in the Senate is to future-proof our economy and stimulate economic activity, in line with the Philippine Development Plan 2023-2028. One of the ways we can achieve this is to broaden the financial inclusion and accessibility of Filipinos needing additional resources for development projects. This is the very mandate of the DBP, to provide development financing for Filipinos," Villar said.

"Therefore, we are promoting amendments to the DBP Charter to give the institution additional capacity to deal with the increased demands for financial resources of different projects from vital sectors. Aside from the additional access to financial resources that DBP can provide, employment for more Filipinos is also one of the outcomes we can ensure with these proposed amendments," he added.

As of December 2023, the DBP's loan portfolio allocated 55.6% to infrastructure and logistics, 21.8% to social infrastructure, 11% to environmental loans, and 5.7% to Micro, Small, and Medium Enterprises (MSMEs), among others.

Among the salient features of New DBP Charter are: 1) increase in authorized capital stock, 2) issuance of shares to the general public, 3) designation of the Secretary of Finance as the ex-officio chairperson, and 4) the engagement in financial leasing in connection with government projects.

Villar said by projecting focus on assisting vital sectors such as infrastructure and logistics, social infrastructure, micro-enterprises, and environmental projects, the country will soon achieve inclusive growth through sustainable financial inclusion, thereby bringing us closer to a robust economy and comprehensive development.