The Senate approved on the third and final reading a bill seeking to improve the capacity of the state-owned Development Bank of the Philippines (DBP) to support important sectors and significantly contribute to economic development.

Senate Bill 2804 or an Act providing for a new charter of the DBP, repealed Executive Order 81, as amended, through a 21-0 vote in favor of the bill. 

“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,” the manifestation of the bill stated. 

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. 

Bigger employment

“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,” the bill’s explanation stated.

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, 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.