The Department of Finance (DOF) has commended the Land Bank of the Philippines (LANDBANK) and the Development Bank of the Philippines (DBP) for their robust financial positions, enabling them to expand services to Filipinos.
Both banks have exceeded the Bangko Sentral ng Pilipinas’ (BSP) minimum Capital Adequacy Ratio (CAR) requirement of 10%, a key benchmark for financial health.
As of November 2024, LANDBANK’s CAR stood at 16.42%, while DBP reported 14.78%, reflecting resilience against financial and operational risks.
“The solid financial footing of LANDBANK and DBP reaffirms their indispensable role in advancing the nation’s progress,” Finance Secretary Ralph G. Recto said.
“This allows them to continuously adhere to prudent financial management practices and effectively utilize their resources to deliver more support to Filipinos, especially in key sectors like infrastructure, agriculture, fisheries, and micro, small, and medium enterprises,” he added.
LANDBANK President and CEO Lynette V. Ortiz emphasized the bank’s mission to sustain growth while aiding national development.
“Our robust financial health and consistent revenue growth empower us to fulfill our mandate, serving as a dependable partner in the national government’s inclusive development agenda,” Ortiz said.
DBP President and CEO Michael O. de Jesus highlighted the bank’s readiness to back the Marcos administration’s economic goals.
“DBP remains financially strong and more than capable to support President Ferdinand Marcos, Jr.’s 10-point economic agenda while pursuing our mandate and serving the needs of our clients and stakeholders with passion and conviction,” de Jesus said.
The DOF is advocating for Congressional approval of amendments to LANDBANK and DBP charters to further strengthen their financial position.
Proposed amendments include allowing the banks to raise private capital by offering shares to the public and increasing their authorized capital stock.
LANDBANK may also streamline its bond issuance process, similar to DBP, to enhance capital access and reduce reliance on government support.
