Active

Development Bank of the Philippines

Official Certification

The Philippines

20 Year

Official Website

Industry Rating

a

Enterprise Introduction

Full Name Of The Enterprise

Development Bank of the Philippines

Country

The Philippines

Market Classification

Business

Enterprise Classification

Bank

Registration Time

1947

Business Status

Active

The Development Bank of the Philippines (DBP) is a state-owned development bank headquartered in Makati, Philippines. Its main mission is to provide banking services to meet the needs of agricultural and industrial enterprises. It has 146 branches, including 14 branch lite units

It was established in 1947 after World War II with the aim of the government rebuilding the country's war-torn infrastructure through its mandate. It focuses on four main areas of financing - infrastructure and logistics, social services, small and medium enterprises, and the environment.

As of 2023, it is the eighth largest bank in the Philippines in terms of assets. DBP is also one of the second largest state-owned and controlled banks, alongside Land Bank of the Philippines (LBP), Overseas Bank of the Philippines (OFW Bank), and Al-Amanah Islamic Bank. As a GOCC (Government-Operated and Controlled Corporation), DBP is required to declare and remit at least half of its annual net income to the national government.

History

DBP Branch in San Fernando, La Union

DBP Branch in Villarque, Catanduan

DBP's history dates back to the Commonwealth era. In 1935, the National Loans and Investments Board (NLIB) was established to coordinate and administer various government trust funds, such as the Postal Savings Fund and the Teachers' Retirement Fund.

In 1939, the NLIB was abolished and its functions were transferred to a new institution, the Agricultural and Industrial Bank (AIB). The AIB operated until the outbreak of World War II.

In 1947, the government established the Rehabilitation Finance Corporation (RFC) under Republic Act 85, which absorbed the assets and took over the functions of the AIB. The RFC provided credit facilities for the development of agriculture, commerce, and industry, as well as for the reconstruction of war-damaged properties.

In 1958, the RFC was restructured into the modern DBP. The change of company name marked a shift from rehabilitation to broader activities.

With an initial capital of 500 million pesos, DBP embarked on the expansion of its facilities and operations to accelerate its efforts to promote the country's economic development. The bank established a nationwide branch network and used local and foreign resources to supplement its capital. It also borrowed directly from the International Financial Institutions Group.

However, in the late 1970s to early 1980s, its viability was undermined by a large number of bad accounts.

In 1986, President Corazon Aquino issued Executive Order 81, which restructured the bank and gave it a new charter. All non-performing assets and liabilities were subsequently transferred to the government. DBP implemented an institutional strengthening program that included a complete overhaul of its credit processes, as well as an employee training program for intensive implementation of its new lending priorities. DBP also reopened its lending windows for housing, agriculture, and small and medium-sized enterprises.

In 1995, DBP received an extended banking license and was granted universal bank status.

President Fidel Ramos signed Republic Act 8523 in 1998, amending DBP's 1986 charter. Key provisions contained in the new DBP charter include the increase of the authorized share capital from 5 billion pesos to 35 billion pesos, as well as the creation of the post of President and CEO.

In February 2016, President Benigno Aquino III approved the merger of DBP with the state-owned Land Bank of the Philippines, subject to approval from the Central Bank of the Philippines (BSP) and written consent from the Philippine Deposit Insurance Corporation. A few months later in September, under the newly elected government of Rodrigo Duterte, the GOCC Governance Council (GCG) cancelled the implementation of the plan. By 2023, under the leadership of Ferdinand "Bongbong" Marcos Jr., the two presidents again floated the idea of a merger, with the goal of completing it around mid-2024. However, as of early October 2023, the BSP said they still had not officially received the merger application. The Secretary of Finance, Ralph Recto, later announced in February 2024 that the proposed DBP-Landbank merger would no longer be pursued.

Organization

DBP's affairs and operations are directed by a 9-member Board of Directors appointed by the President of the Philippines, whose properties are managed and preserved, and whose corporate powers are exercised by the Board of Directors. The term of office of the Chairperson, President, and Board members is 1 year, or until a successor is appointed.

The Chairperson of the Board of Directors is appointed by the President of the Philippines from among the members of the Board of Directors: Provided that the positions of Chairperson of the Board of Directors and President of DBP may not be held by the same person.

The Chairperson of the DBP presides over Board meetings, while the President of the Bank serves as Vice Chairperson of the Board and, therefore, assists the Chairperson and acts on his behalf in the absence or incapacity of the Chairperson.

The Chief Executive Officer of the DBP is the President, who is elected by the Board of Directors from among the Board of Directors with the advice and consent of the President of the Philippines. Among other powers and duties, the President of the DBP shall execute, enforce and manage the policies, measures, orders and resolutions approved by the Board; direct and supervise the operation and management of the Bank; and exercise other powers and perform other functions or duties assigned to him by law or by the Board from time to time.

The DBP Board of Directors prescribes the organization and staffing of the bank's officers and employees and determines their remuneration and other compensation based on the recommendation of the DBP President. All positions in the bank are subject to the remuneration, job classification system and eligibility criteria approved by the DBP Board of Directors based on a comprehensive job analysis of actual duties and responsibilities.