Development Bank of the Philippines

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Development Financing Institution
Founded1947 in Manila, Philippines
HeadquartersMakati, Philippines
Key people
₱4.7 billion (2015) [1]
Total assets₱483 billion (2016)

The Development Bank of the Philippines (DBP) is a state-owned development bank headquartered in Makati City, the Philippines.

It is the seventh-largest bank[1] in the Philippines in terms of assets with assets of more than P483 billion as of 2016. It is the second-largest state-owned bank, next only to Landbank. It is also one of the largest government-owned and controlled corporations (GOCCs) in the Philippines.

It has 114 branches[2] and 15 regional marketing centers across the country.


Under its charter, DBP is classified as a development bank. It is primarily tasked to provide banking services to cater to the needs of agricultural and industrial enterprises. It may also perform all other functions of a thrift bank.[3]

It focuses on four major areas of financing—infrastructure and logistics, social services, small and medium enterprises, and the environment.[4]

It also offers deposit and investment products and services, trade products and services, treasury products and services, transfer and remittance services, among others.[5]

As a government-owned and controlled corporation (GOCC), DBP is required to declare and remit at least half of its annual net earnings to the national government.[6] In 2012, it turned over P4 billion in dividends to the national coffers.[7]


DBP's history can be traced back to the Commonwealth Era. In 1935, the National Loan and Investment Board (NLIB) was created to coordinate and manage the various government trust funds such as the Postal Savings Fund and the Teacher's Retirement Fund. In 1939, the NLIB was abolished and its functions were transferred to a new body, the Agricultural and Industrial Bank (AIB).

AIB continued operations until the outbreak of World War II. In 1947, the AIB was abolished and the Rehabilitation Finance Corporation was formed in its place by Republic Act No. 85, absorbing the powers and functions of the AIB. The RFC provided credit facilities for the development of agriculture, commerce and industry and the reconstruction of properties damaged by the war. In 1958, the RFC was reorganized into the modern-day DBP, reflecting that since reconstruction was largely finished, the RFC can venture into other fields.

With an initial capital of 500 million pesos, DBP set to work on expanding its facilities and operations to accelerate efforts on national economic development. It established a nationwide branch network and tapped local and foreign resources to complement its capital. It also borrowed money directly from international finance institutions.

In the late 70s up to the early 80s, however, its viability was undermined by numerous non-performing accounts.[8]

In 1986, President Corazon Aquino issued Executive Order No. 81, which reorganized the bank and gave it a new charter. All non-performing assets and liabilities were subsequently transferred to the government and led to DBP forming a program to strengthen its institutions, such as a thorough revision of the credit process and a training program for the intensive implementation of new lending thrusts. Likewise, DBP reopened its lending windows for housing, agriculture and SMEs.

In 1995, DBP became a universal bank when it was granted its universal banking license, and three years later, had its charter revised. Under the revised charter, DBP's authorized capital would increase from five billion pesos to 35 billion pesos and led to the creation of the posts of President and CEO.

In February 2016, President Benigno Aquino III approved the merger of DBP with Landbank which is another state-owned bank pending approval from the Bangko Sentral ng Pilipinas and written consent of the Philippine Deposit Insurance Corp. Landbank will be the surviving entity.

On September 2016, the proposed DBP-Landbank merger was officially abandoned by the Governance Commission for GOCCs (GCG).[9][10]

Organizational structure[edit]

DBP office in downtown Cotabato City

The DBP Head Office in Makati exercises control and supervision of all DBP branch offices throughout the Philippines. The Board of Directors decides on policy matters to be carried out by the President and Chief Executive Officer. The President delegates policy and administrative directives to Executive Vice Presidents and Senior Vice Presidents manning specialized Departments of the bank. The Managers and Assistant Managers supervise the Division Chiefs in implementing daily tasks handled by rank-and-file personnel.

Key officials[edit]

As a state-owned financial institution, the Philippine President carries the power of appointing key officials of the bank, including the Chairman of the Board, the President and Chief Executive Officer, the Directors, and the Chief Legal Counsel. Past DBP presidents were former cabinet secretaries, corporate managers, economists, and international finance executives.

As of February 2017, the key officials[11] of the bank include:

Alberto G. Romulo- Chairman

Cecilia C. Borromeo - President and Chief Executive Officer, Vice Chairman of the Board of Directors

Miguel C. Abaya - Director

Ma. Lourdes A. Arcenas - Director

Luis C. Bonguyan - Director

Emmanuel P. Galicia, Jr. - Director

Rogelio V. Garcia - Director

Teodoro M. Jumamil - Director

Rolando L. Metin - Director

Subsidiaries and affiliates[edit]

DBP subsidiaries and affiliates include:


DBP competes in bank marketing against the largest commercial banks such as Metrobank, BPI, BDO Unibank and PNB. Outside the Metro Manila area, depending on the situation, it either competes against or complements the other banks in the area.

On the other end of the spectrum, DBP takes on a dual role with Landbank, another government-owned bank. It either competes against or works with Landbank, as the need arises.

See also[edit]

External links[edit]


  1. ^ "BDO still biggest bank; Landbank overtakes BPI -".
  2. ^ "Development Bank of the Philippines".
  3. ^ "Development Bank of the Philippines".
  4. ^ "Development Bank of the Philippines".
  5. ^ "Development Bank of the Philippines".
  6. ^ "Archived copy". Archived from the original on 2017-02-18. Retrieved 2017-02-28.CS1 maint: Archived copy as title (link)
  7. ^ Bordadora, Michelle V. Remo, Norman. "'Reformed' DBP remits P4B".
  8. ^ "Development Bank of the Philippines".
  9. ^ lbp-dbp-merger-abandoned-496136 (6 September 2016). "LBP-DBP merger abandoned".
  10. ^ de Vera, Ben; Esplanada, Jerry (10 February 2016). "Aquino OKs merger of Landbank, DBP". Philippine Daily Inquirer. Retrieved 12 February 2016.
  11. ^ "Development Bank of the Philippines".