The House of Representatives on Monday approved on final reading a bill revising the charter of the Development Bank of the Philippines (DBP).
With 219 affirmative votes, six negative votes, and no abstention, the chamber passed House Bill 9556 or the proposed New Development Bank of the Philippines Act.
The bill strengthens the powers and functions of the state-owned bank as a premier government developmental financial institution.
It seeks to increase the authorized capital of DBP to PHP100 billion, from the current PHP35 billion, to broaden its credit assistance to priority sectors.
DBP’s charter was last amended in 1998 through Republic Act 8523, which raised the bank’s authorized capital stock from PHP5 billion.
The measure will broaden the bank’s menu of financial products and services, including the authority to engage in traditional and non-traditional modes of financing businesses while enhancing its compliance with risk-based banking laws and regulations.
The new charter would also bolster existing governance mechanisms, tighten sanctions and penalties for specific violations, and provide greater operational and organizational flexibility for the bank.
The DBP’s operations shall be integrated in the key development programs of the national development agenda intended to support priority development programs such as infrastructure, countryside tourism development, responsible entrepreneurship, agribusiness, agricultural and industrial enterprises, micro, small, and medium enterprises, and efficient social services to sectors such as education, health care, socialized housing, and environmental protection.
Source: Philippines News Agency