DoF urges Congress to fast-track LANDBANK, DBP charter amendments

The Department of Finance (DoF) is urging Congress to expedite the approval of bills that would amend the charters of state-run banks LANDBANK and DBP, allowing them to access private capital by going public.

These proposed amendments aim to enable the banks to reduce their reliance on government support and improve financial standing.

House Bill No. 11230 seeks to revise DBP's charter while LANDBANK's bills are still pending; both proposals include increasing authorized capital stock offerings to the public.

The International Monetary Fund (IMF) has called for swift restoration of capital to these banks following their contributions to Maharlika Investment Corp. (MIC), stressing the need for financial stability and a level playing field in the banking sector.

LANDBANK and DBP have maintained strong financial positions, meeting BSP's Capital Adequacy Ratio requirements consistently.