House OKs DBP charter bill, raises capital to PHP300B

The House of Representatives approved a bill on Tuesday that aims to establish a new charter for the Development Bank of the Philippines (DBP) with 199 votes in favor, three against, and no abstentions.

HB 11230 seeks to repeal Executive Order No. 81 from 1986 and empower the DBP to support key sectors such as infrastructure development, MSME expansion, education, healthcare, housing, environmental protection, and social services.

The bill also increases the bank's authorized capital stock from PHP50 billion to PHP300 billion, allowing government-owned corporations to invest in its shares. The new charter mandates the DBP to promote economic growth by supporting small businesses and 'high impact programs,' such as infrastructure and housing developments.

Under the new charter, the DBP will serve as a national development policy bank for implementing government policies on priority area financing and financial sector development. Both House and Senate versions of the bill allow the government to sell DBP shares to the public, provided that it retains a 70% stake.

The P300 billion capital stock will be divided into three billion common shares with a par value of PHP100 each, of which PHP32 billion or 10.67% will be subscribed and fully paid by the national government.