House approves bill to strengthen DBP's role with PHP300B capital increase

On Monday, the House of Representatives approved on second reading a bill seeking to establish a new charter for the Development Bank of the Philippines (DBP) to strengthen its role in national development.

The measure aims to empower the DBP to provide financing and financial services to strategic sectors such as infrastructure, micro, small, and medium enterprises (MSMEs), education, healthcare, housing, environmental protection, and other social services.

House Speaker Martin Romualdez and Manila Rep. Erwin C. Tieng, who heads the House banks committee, authored the bill which seeks to increase DBP's authorized capital stock from PHP50 billion to PHP300 billion.

Of this amount, PHP32 billion will be subscribed and fully paid by the national government, with provisions allowing GOCCs and other government financial institutions to invest in DBP shares.

DBP President Michael de Jesus expressed optimism about the proposed amendments, emphasizing the need for increased capital to bolster development initiatives and improve access to capital markets.