BSP considers additional relief for DBP, contingent on strong justification

The Bangko Sentral ng Pilipinas (BSP) is considering further regulatory relief for the Development Bank of the Philippines (DBP), contingent on strong justification from DBP.

DBP President Michael O. de Jesus announced plans to request additional regulatory relief this year, hoping it will provide 'comfort' as the bank continues to grow its capital position following contributions to the Maharlika Investment Corp. in 2023.

The BSP evaluates various metrics including capital adequacy and loan portfolio performance before granting extensions of regulatory relief, emphasizing prudence and safety considerations.

LANDBANK has indicated it will not seek further regulatory relief due to its strong financial standing, contrasting with DBP's current situation as the latter awaits a decision from the central bank.

A recent House bill aims to replace DBP’s existing charter by raising authorized capital stock to P300 billion and allowing an initial public offering, subject to Senate approval.