đź“·dealstreetasia
The Department of Finance has proposed amendments to the charters of the Land Bank of the Philippines (Landbank) and the Development Bank of the Philippines (DBP), potentially increasing their capitalization to significant figures.
In an interview with reporters on Wednesday, Finance Secretary Ralph Recto said that the proposals have been finalized and presented to the Senate.
While he couldn’t recall the exact figures, he mentioned an increase of “P300 billion for DBP and then P1 trillion […] for Landbank.”
Landbank, serving as the official depository bank of the national government, is dedicated to fostering development in the countryside and enhancing financial inclusivity for rural communities through targeted credit initiatives.
On the other hand, the Development Bank of the Philippines (DBP) extends beyond the typical functions of a thrift bank in its core mission of development. It actively supports the medium- and long-term financing requirements of agricultural and industrial ventures, particularly emphasizing assistance to small- and medium-sized enterprises.
“Their mandates are totally different, so I think we’re better off with two of them,” Recto said.
A proposal has been submitted and is currently under consideration at the House of Representatives, where the lower chamber has already passed a bill on its final reading that aims to amend the charter of the DBP.
Previously, DBP was primarily focused on increasing its authorized capital stock to P100 billion.
Additionally, there were earlier intentions to consolidate the Landbank and DBP into one single government bank, which would have become the largest bank in the Philippines. However, those plans have been shelved for this year. (TCSP)
