BSP to review DBP's request for regulatory relief extension

The Bangko Sentral ng Pilipinas (BSP) will assess any request from the Development Bank of the Philippines (DBP) for an extension of its regulatory relief, provided a strong and reasonable justification is presented.

BSP Deputy Governor Chuchi Fonacier stated that the central bank would conduct a thorough review if DBP seeks an extension, especially after the bank contributed to the Maharlika Investment Fund (MIF).

DBP President and CEO Michael O. de Jesus previously announced the bank's intention to seek an extension, noting that the relief was initially granted under specific conditions and time limits.

De Jesus expressed hope that the BSP would extend the regulatory relief to allow the state lender to further grow its capital, describing the extension as a matter of "comfort".

The International Monetary Fund (IMF) had emphasized the importance of replenishing DBP's capital used for the MIF's initial funding and urged the bank to exit regulatory relief as soon as possible.

Fonacier agreed with the IMF's stance that regulatory relief should be time-bound to ensure a level playing field in the banking sector.

In contrast, Land Bank of the Philippines President and CEO Lynette V. Ortiz indicated that Landbank no longer requires such relief.