The Department of Finance (DOF) is set to take on the role of Chairperson of the Development Bank of the Philippines (DBP) Board under a proposed new charter, aiming to enhance the bank’s financial stability and responsiveness to national development needs.
“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,” Finance Secretary Ralph G. Recto said.
Approved on the third and final reading in both Houses of Congress, the bill seeks to establish a new charter for the DBP, strengthening its role as the country’s premier financial institution for development.
The proposed changes include appointing the Secretary of Finance as the ex-officio Chairperson of the DBP Board to ensure government participation in the bank’s decision-making and alignment with its development mandate.
Currently, the DOF has no representation on the DBP Board.
The measure also adds the Secretary of the National Economic and Development Authority (NEDA) as an ex-officio member, along with three Independent Directors.
The new charter expands DBP’s mandate to support government programs focused on economic growth, productivity, and key sectors such as infrastructure, business expansion, micro, small, and medium enterprises (MSMEs), education, health care, housing, social services, and environmental protection.
It also tasks the DBP with implementing government policies on priority financing, competition in financial markets, and financial sector development.
To bolster financial stability, the bill allows the DBP to offer up to 30% of its shares to the public, enabling the bank to raise capital while ensuring the government retains at least 70% of its outstanding capital stock.
The measure also increases DBP’s authorized capital stock from PHP 35 billion to PHP 300 billion, expanding its capacity to provide credit assistance and financial products.
As the country’s eighth-largest bank by assets, DBP has been designated as the Infrastructure Bank by the national government.
With 146 full-fledged branches and branch lite units, DBP serves many underserved and unbanked areas nationwide.
Its charter was last amended in 1998 through Republic Act No. 8523.
