MANILA, Philippines 鈥� Proposals to create a new charter for the Development Bank of the Philippines (DBP) have been approved by the House of Representatives on second reading.
House Bill (HB) No. 11230, or the proposed New Development Bank of the Philippines Act鈥攁 consolidation of six bills鈥攚as approved during Monday鈥檚 session through viva voce, or voice voting.
If enacted, Executive Order No. 81 issued on December 3, 1986, or the 1986 Revised Charter of the Development Bank of the Philippines will be repealed.
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With the proposed measure, DBP will be tasked to support the programs of government that are aimed at propelling economic growth and increasing, like the following sectors:
- development of both digital and physical infrastructure
- expansion of businesses, especially micro, small, and medium
enterprises (MSMEs) - high-impact programs in education, health care, housing, other social services, and those that support the protection of the environment
Also, the capital stock of the DBP will be increased to P300 billion, subdivided into three billion shares, or a value of P100 per share. This will be an increase from the current P35 billion, as stated last March 2024 by DBP president and chief executive officer Michael de Jesus.
Under the bill, the government will be required to always own at least 70 percent of the total outstanding capital of DBP.
鈥淭he capital stock of the Bank shall be Three hundred billion pesos (P300,000,000,000.00) divided into three billion (3,000,000,000) shares, with a par value of One hundred pesos (P100.00) per share. The Board shall determine the classification of shares, their corresponding rights, privileges, or restrictions, if any,鈥� the bill read.
鈥淧rovided, that the National Government shall own, at all times, at least seventy percent (70 percent) of the total outstanding capital stock of the Bank,鈥� it added.
Government-owned and controlled corporations or GOCCs are also allowed to place investments with the DBP.
鈥淭he provisions of their respective charters to the contrary notwithstanding, all GOCCs, including government financial institutions, are authorized to invest in shares of stock of the Bank,鈥� the bill stated.
Last March 7, 2024, de Jesus said they are working with the Department of Finance (DOF) and lawmakers towards reforming the DBP鈥檚 26-year-old charter so that they can 鈥渃ater to the demands of an ever-changing market and rapidly-evolving economic landscape.鈥�
鈥淲e are working hand-in-hand with all stakeholders, especially the DOF in ensuring that DBP would be able to finance more developmental projects, especially in the countryside,鈥� de Jesus said in a statement posted on DBP鈥檚 website.
鈥淭hese amendments are needed to boost our financial position and make the Bank responsive to the evolving needs of our clients,鈥� he added.