The Senate, on Monday, approved on the third and final reading a bill seeking to augment the capacity of the Development Bank of the Philippines (DBP) to support important sectors and significantly contribute to the country's economic development.

Senate Bill 2804 or an Act providing for a new charter of the DBP, repealing for the purpose Executive Order 81, as amended, has garnered 21 affirmative votes, zero negative votes, and one abstention from the lawmakers during the plenary session. 

Senator Mark Villar, the author and sponsor of the bill, stressed the imminent need to amend the DBP’s charter.

“One of our advocacies here in the Senate is to future-proof our economy and stimulate economic activity, in line with the Philippine Development Plan 2023-2028. One of the ways we can achieve this is to broaden the financial inclusion and accessibility of Filipinos needing additional resources for development projects. This is the very mandate of the DBP, to provide development financing for Filipinos,” Villar said in his manifestation. 

Villar noted that the approval of the measure would provide the institution with additional capacity to deal with the increased demands for financial resources for different projects from vital sectors. 

“Aside from the additional access to financial resources that DBP can provide, employment for more Filipinos is also one of the outcomes we can ensure with these proposed amendments,” he added.

As of December 2023, the DBP’s loan portfolio allocated 55.6 percent to infrastructure and logistics; 21.8 percent to social infrastructure; 11 percent to environmental loans; and 5.7 percent to Micro, Small, and Medium Enterprises (MSMEs), among others. 

Among the salient features of the New DBP Charter include the increase in authorized capital stock; issuance of shares to the general public; designation of the Secretary of Finance as the ex-officio chairperson; and engagement in financial leasing in connection with government projects.

Villar believes that the country will soon achieve inclusive growth through sustainable financial inclusion by projecting a focus on assisting vital sectors such as infrastructure and logistics, social infrastructure, micro-enterprises, and environmental projects. 

“Thereby bringing us closer to a robust economy and comprehensive development,” he pointed out.