VILLAR: Amending the DBP Charter is one way to future proof economy and stimulate economic activity
August 28, 2024
VILLAR: Amending the DBP Charter is one way to future proof economy and stimulate economic activity
Senator Mark Villar delivered his sponsorship speech on the proposed amendments to the charter of the Development Bank of the Philippines. Senate Bill No. 2804 authored by Senator Mark Villar and Senate President Chiz Escudero has undergone multiple consultative meetings, public hearings, and technical working group sessions to craft Committee Report No. 308, which Senator Mark sponsored on the Senate floor.
"Given the diversification of DBP's loan portfolio, the changing dynamics of the banking sector, and most particularly the government's goal of attaining economic sustainability, there is an imminent need to amend the DBP's charter to augment its capacity to support the country's plans for economic development and our vital sectors," Senator Mark said.
As of December 2023, the DBP's loan portfolio allocated 55.6% to infrastructure and logistics, 21.8% to social infrastructure, 11% to environmental loans, and 5.7% to Micro, Small, and Medium Enterprises (MSMEs), among others.
"Isa po sa ating mga advocacy dito sa Senado is to future-proof our economy and stimulate economic activity, in line with the Philippine Development Plan 2023-2028. Isa sa mga paraan para makamit natin ito is to broaden the financial inclusion and accessibility of Filipinos needing additional resources for development projects. This is the very mandate of the DBP -- to provide development financing for Filipinos," Senator Mark emphasized.
"Kung kaya ay isinusulong po natin ang amendments sa Charter ng DBP upang mabigyan ang institusyon ng additional capacity to deal with the increased demands for financial resources of different projects from vital sectors. Bukod sa karagdagang access sa financial resources na maibibigay ng DBP, trabaho para sa mas maraming Pilipino ang isa rin sa mga masisigurado nating outcome nitong proposed amendments," He further highlighted.
Some of the salient features of the amendments to DBP's Charter include the following: (1) increase in authorized capital stock; (2) issuance of shares to the general public; (3) designation of the Secretary of Finance as the ex-officio chairperson; and (4) the engagement in financial leasing in connection with government projects.
"By projecting focus on assisting vital sectors such as infrastructure and logistics, social infrastructure, micro-enterprises, and environmental projects, we will soon achieve inclusive growth through sustainable financial inclusion, thereby bringing us closer to a robust economy and comprehensive development," Senator Mark said.
After Senator Mark's sponsorship speech, the new charter of the DBP is set to be interpellated on the floor in the coming week.
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