DoF pushes Congress to pass new charters for LANDBANK, DBP

The Department of Finance (DoF) is urging Congress to pass new charters for state-run banks LANDBANK and DBP to enhance their financial capabilities and reduce dependence on government funding.

The proposed amendments aim to allow these banks to access capital more efficiently, including through an initial public offer (IPO).

The LANDBANK charter amendments propose increasing its capitalization to P1 trillion from P200 billion, while proposed legislation for DBP seeks to raise its authorized capital stock to P300 billion from P35 billion.

House Bill No. 11230 amending DBP's charter was approved by the House banks panel in November 2019, and Senate Bill No. 2839 proposing changes to DBP's charter passed the Senate in September.

Related bills for LANDBANK are still pending in committee.

The International Monetary Fund (IMF) has recommended restoring capital to these government banks following their contribution to the initial funding of the Maharlika Investment Corp. (MIC).

Finance Secretary and MIC chairperson Ralph Recto noted that LandBank had a capital adequacy ratio of 16.42 percent as of November 2024, and DBP posted 14.78 percent, both exceeding the BSP's 10 percent threshold.