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Advocates Philippines
Senator Mark Villar Champions Amendments To DBP Charter To Boost Economic Growth
Photo credit: Senate PH
Senator Mark Villar took to the Senate floor to advocate for essential amendments to the charter of the Development Bank of the Philippines (DBP). The proposed changes, encapsulated in Senate Bill No. 2804, co-authored by Senator Villar and Senate President Chiz Escudero, are designed to enhance the DBP's capacity to support the country's economic development and critical sectors.
In his sponsorship speech, Senator Villar emphasized the importance of updating the DBP's charter to keep pace with the evolving needs of the banking sector and the government’s economic goals. "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," he stated.
As of December 2023, DBP's loan portfolio reflects a strategic allocation: 55.6% towards infrastructure and logistics, 21.8% for social infrastructure, 11% for environmental loans, and 5.7% dedicated to Micro, Small, and Medium Enterprises (MSMEs).
Senator Villar highlighted the Senate's commitment to "future-proofing" the economy and stimulating economic activity, in alignment with the Philippine Development Plan 2023-2028. "One of our advocacies here in the Senate 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," he explained.
The proposed amendments to the DBP charter aim to address the growing demands for financial resources across various sectors. Key changes include increasing the authorized capital stock, allowing the issuance of shares to the public, designating the Secretary of Finance as the ex-officio chairperson, and enabling the DBP to engage in financial leasing for government projects.
Senator Villar expressed confidence that these amendments would lead to inclusive growth and sustainable financial inclusion, ultimately contributing to a stronger economy and comprehensive national development.
The Senate is expected to begin interpellation on the DBP charter amendments in the coming week.
In his sponsorship speech, Senator Villar emphasized the importance of updating the DBP's charter to keep pace with the evolving needs of the banking sector and the government’s economic goals. "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," he stated.
As of December 2023, DBP's loan portfolio reflects a strategic allocation: 55.6% towards infrastructure and logistics, 21.8% for social infrastructure, 11% for environmental loans, and 5.7% dedicated to Micro, Small, and Medium Enterprises (MSMEs).
Senator Villar highlighted the Senate's commitment to "future-proofing" the economy and stimulating economic activity, in alignment with the Philippine Development Plan 2023-2028. "One of our advocacies here in the Senate 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," he explained.
The proposed amendments to the DBP charter aim to address the growing demands for financial resources across various sectors. Key changes include increasing the authorized capital stock, allowing the issuance of shares to the public, designating the Secretary of Finance as the ex-officio chairperson, and enabling the DBP to engage in financial leasing for government projects.
Senator Villar expressed confidence that these amendments would lead to inclusive growth and sustainable financial inclusion, ultimately contributing to a stronger economy and comprehensive national development.
The Senate is expected to begin interpellation on the DBP charter amendments in the coming week.
Aug 29, 2024
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