Manila: A measure seeking to establish a new charter for the Development Bank of the Philippines (DBP) to strengthen its role as the country's premier financial institution for national development has hurdled second reading approval at the House of Representatives. During Monday's plenary session, the chamber approved through voice voting House Bill No. 11230, which aims to empower the DBP to provide development financing and financial services to strategic sectors, including infrastructure, micro, small and medium enterprises (MSMEs), education, healthcare, housing, environmental protection, and other social services. According to Philippines News Agency, the bill, authored by House Speaker Martin Romualdez and House Committee on Banks and Financial Intermediaries chairperson Irwin Tieng, repeals Executive Order 81, the 1986 Revised Charter of the DBP. It seeks to equip the state-owned bank with enhanced powers to promote global competitiveness and financial viability. The DBP, under the bill, shall serve as a national development policy bank for the implementation of government policies on priority area financing, enhanced competition in financial markets, and the promotion of financial sector development that would lead to improvements in capital allocation and macroeconomic stability. The measure proposes to increase DBP's authorized capital stock from PHP50 billion to PHP300 billion. Of this amount, PHP32 billion, or 10.67 percent, would be subscribed and fully paid by the national government. DBP President and Chief Executive Officer Michael de Jesus expressed optimism about the proposed amendments, emphasizing the need for the bank to secure more capital to bolster its development initiatives. "We need to increase our capital. There's no question. That's why we're working with the Congress now on the amendment to the DBP Charter," de Jesus said. It shall allow the DBP to allocate its unrestricted earnings for the increase in the paid-up capital stock of the national government. Government-owned and con trolled corporations, including government financial institutions, shall be authorized to invest in the shares of stocks of the DBP. De Jesus said while the bank is expected to meet all minimum capital ratios this year, there is a need to further increase capital. De Jesus highlighted that the bill includes provisions allowing the bank to raise funds from the capital markets. "The ability to tap the capital markets. is critical. The government will always own at least 70 percent, but there'll be an option for the private sector or other government agencies to come in," he said. The DBP chief added that the Department of Finance has identified the bank's proposed new charter as a priority measure and will seek presidential certification to expedite their passage. In September last year, the Senate approved Senate Bill 2804, also known as the New DBP Act.