DEVELOPMENT BANK of the Philippines (DBP) on Thursday said it seeks to expand its products and services for priority sectors by increasing its capital stock by P265 billion through a legislated amendment to its three-decade-old charter.
In a statement, DBP President and Chief Executive Officer Michael O. de Jesus said hiking the state lender’s capital stock to P300 billion from P35 billion would broaden its menu of financial products and services and boost financing for development projects.
“These amendments are needed to boost our financial position and make the bank responsive to the evolving needs of our clients,” he said.
The DBP, the eighth-largest bank in the country in terms of assets with 146 branches nationwide, announced the move weeks after the Finance department scrapped a plan to merge it with Land Bank of the Philippines.
DBP had opposed the merger, saying the concentration of risks in one lender would be bad for the economy.
“We are working hand in hand with all stakeholders, especially the Department of Finance (DoF) in ensuring that DBP would be able to finance more developmental projects especially in the countryside,” Mr. De Jesus said.
Several bills on the capital hike are pending at the House of Representatives committee on banks, while a counterpart bill is expected to be filed in the Senate, he said.
The proposed changes would give the DBP more operational and organization flexibility, letting it engage in traditional and nontraditional financing modes “while enhancing its compliance with risk-based banking laws and regulations,” Mr. De Jesus said.
The charter of DBP, the successor of a bank set up in the aftermath of World War II, was last changed through a 1998 law that raised its authorized capital stock to P35 billion from P5 billion.
“DBP is also committed to work with the National Government and the DoF in the wake of proposals to publicly list state-owned banks,” Mr. De Jesus said. — Kyle Aristophere T. Atienza
