The Department of Finance (DOF) announced Thursday that the Land Bank of the Philippines (LandBank) and the Development Bank of the Philippines (DBP) are well-positioned to deliver expanded services to Filipinos thanks to their robust financial performance.
Both state banks have consistently surpassed the Bangko Sentral ng Pilipinas’ (BSP) minimum capital adequacy ratio (CAR) requirement of 10 percent, a key measure of financial stability. As of November 2024, LandBank reported a CAR of 16.42 percent, while DBP recorded a CAR of 14.78 percent.
“The solid financial footing of LandBank and DBP underscores their critical role in driving the nation’s progress,” said Finance Secretary Ralph Recto. “Their stability allows them to adhere to prudent financial management practices and deploy resources to key sectors such as infrastructure, agriculture, fisheries, and micro, small, and medium enterprises (MSMEs).”
LandBank President and CEO Lynette Ortiz highlighted the bank’s strong revenue growth and financial health, affirming its commitment to supporting the government’s inclusive development agenda. Similarly, DBP President and CEO Michael de Jesus assured the public of the bank’s financial strength and readiness to support President Ferdinand R. Marcos Jr.’s 10-point economic plan.
Proposed Charter amendments
To further enhance both banks’ capabilities, the DOF is advocating for amendments to their charters. One proposed change is allowing the banks to access private capital through public stock offerings, which would increase their authorized capital and diversify funding sources.
The amendments include provisions to streamline LandBank’s bond issuance process, aligning it with DBP’s practices. This change would enable both banks to access capital more efficiently, reducing their reliance on government support and dividend relief.
Commitment to serving key sectors
LandBank and DBP remain steadfast in their mandates to serve critical sectors and stakeholders. Their strong financial positions ensure continued support for agriculture, infrastructure development, MSMEs, and other vital industries.
“The financial health of LandBank and DBP allows them to be dependable partners in advancing economic growth and delivering critical services to Filipinos,” Recto said.
With these proposed reforms and their unwavering commitment to development, LandBank and DBP are poised to play an even more significant role in shaping the country’s economic future.