The Market Monitor Minding the Nation's Business
The Department of Finance (DOF) is pushing for amendments to the Development Bank of the Philippines (DBP) charter to enhance its financial stability and reinforce its developmental mandate, Finance Secretary Ralph Recto said.
“The DBP has a very clear mandate: to drive economic growth by supporting the medium and long-term needs of agricultural and industrial enterprises. Hence, 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,” Recto stated on Friday.
The proposed revisions to the DBP charter, which have cleared the third and final reading in both houses of Congress, seek to align the bank’s leadership and operations with national development goals.
One key amendment would designate the Secretary of Finance as the ex-officio chairperson of the DBP Board, ensuring government oversight in decision-making and strategic direction. Currently, the DOF has no representation on the DBP Board. The proposal also includes appointing the Secretary of the National Economic and Development Authority (NEDA) as an ex-officio member, along with three independent directors.
The new charter broadens the DBP’s scope by incorporating support for government initiatives that stimulate economic growth and enhance productivity. These include funding digital and physical infrastructure projects, fostering business expansion—particularly for micro, small, and medium enterprises (MSMEs)—and financing high-impact programs in education, healthcare, housing, social services, and environmental protection.
Additionally, the reforms mandate the DBP to implement government policies on priority financing areas, foster competition in financial markets, and contribute to the development of the broader financial sector.
To bolster its financial position, the bill authorizes the DBP to offer up to 30 percent of its shares to the public, enabling capital-raising efforts while maintaining at least 70 percent government ownership to retain state control.
Furthermore, the legislation proposes increasing the bank’s authorized capital stock from PHP35 billion to P300 billion, significantly expanding its capacity to extend credit to priority sectors and advance its developmental mission.