The proposed charter of the Development Bank of the Philippines (DBP) designates the Finance Secretary as its Chairperson, ensuring government oversight and alignment with national development goals. The bill also increases the DBP's authorized capital stock and expands its mandate to encompass a wider range of government programs.
Finance Secretary Ralph G. Recto is poised to take on the role of Chairperson of the Board under the proposed new charter for the Development Bank of the Philippines ( DBP ). The proposed charter designates the Secretary of Finance as the ex-officio Chairperson of the DBP Board, ensuring government participation in the Bank’s decision-making and alignment with its developmental mandate. Currently, the Department of Finance (DOF) lacks representation on the DBP Board.
Recto emphasized that the proposed reforms, including his appointment as Chair, aim to strengthen the DBP's financial stability and bolster its capacity to drive national progress and improve the lives of Filipinos.The bill, which seeks to establish a new charter for the DBP to enhance its powers and functions as the nation's leading financial institution for national development, has cleared the third and final reading in Congress. The proposal also includes the Secretary of the National Economic and Development Authority (NEDA) as an ex-officio member, alongside three Independent Directors. According to the DOF, the bill broadens the DBP's mandate to encompass government programs that stimulate economic growth and productivity.This includes initiatives focused on the development of digital and physical infrastructure, expansion of businesses and micro, small, and medium enterprises (MSMEs), and the advancement of high-impact programs in education, healthcare, housing, social services, and environmental protection. The DBP will also be entrusted with implementing government policies on priority area financing, fostering competition within financial markets, and promoting the development of the financial sector. To fortify its financial stability, the new charter authorizes the DBP to offer a maximum of 30 percent of its shares to the public or as deemed necessary. This will enable the bank to raise capital to support its expanded mandate and facilitate public participation. The national government will retain at least 70 percent of its outstanding capital stock to ensure effective control of the bank.Furthermore, the bill elevates the DBP's authorized capital stock (ACS) from P35 billion to P300 billion, empowering it to extend broader credit assistance to priority sectors and diversify its offerings of financial products and services. The DBP, the eighth largest bank in the country by assets, has been designated as the Infrastructure Bank by the National Government. With a network of 146 full-fledged branches and branch-lite units, the DBP serves numerous underserved and unbanked areas. Its charter was last amended in 1998 through Republic Act No. 8523
Development Bank Of The Philippines DBP Finance Secretary Ralph Recto New Charter Economic Growth Government Participation Infrastructure Development Financial Sector Development
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