The Development Bank of the Philippines (DBP) is asking the Bangko Sentral ng Pilipinas (BSP) for an extension of regulatory relief this year, while stressing it remains well-capitalized despite the P25 billion in capital infusion to the Maharlika Investment Fund.

“We will seek regulatory relief just for comfort,” DBP president and chief executive officer Michael de Jesus told the media last Friday at the BSP’s 2025 Annual Reception for the Banking Community.

However, he said the DBP is capable of meeting the minimum capital ratios this year based on its year-ago performance.

DBP’s capital adequacy ratio as of November 2024 stood at 14.78 percent, above the Central Bank’s minimum requirement of 10 percent.

Within requirements

“We will meet the minimum capital ratios this year but we want to exceed them over time,” De Jesus said.

Aside from the regulatory relief, he said the DBP is still asking for dividend relief from Malacañang this year to build up its capital.

Under the law, DBP as one of the government owned and controlled corporations must remit 75 percent of their annual earnings to the national government to support various infrastructure and social programs and projects.

“We’ve been seeking for it in the past six or seven years,” De Jesus said.

These statements came after the International Monetary Fund recommended to the DBP and Land Bank of the Philippines (LandBank) to craft plans for recapitalization after their combined capital infusion of P75 billion into Maharlika Investment Fund, the country’s first sovereign wealth fund.

DBP hopes for a speedy passage of the bank’s new charter which will allow it to raise capital in various ways, including an initial public offering (IPO).

“The bill includes various options such as IPO, but the government should always own 70 percent,” De Jesus said.

He shared the Department of Finance as the bill’s proponent aims to obtain the Congress’ approval for the new charter this year.

De Jesus said the new charter will help strengthen DBP’s financial stability as it also aims to secure 100 percent coverage for non-performing loans.

“Remember, we’re also increasing our provisions for loan losses. Last year, it was 60 to 70 percent. This year, the provision for NPL is about 95 percent,” he shared.

On the other hand, LandBank president and chief executive officer Lynette Ortiz said it does not need the regulatory relief.

“This year we’ve done a lot of assessments around risks and we are very prudent. Our provisions are sufficient and the numbers are slightly lower,” she said.