Development Bank of the Philippines
From Wikipedia, the free encyclopedia
| Development Bank of the Philippines | |
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| Type | State-owned |
|---|---|
| Founded | Manila, Philippines (1935) |
| Headquarters | Makati City, Philippines |
| Key people | Patricia A. Santo Tomas, Chairman Reynaldo G. David, President and CEO |
| Industry | Finance and Insurance |
| Products | Financial Services |
| Net income | P3.2 billion PHP (2005) [1] |
| Employees | unknown |
| Slogan | The bank for all Filipinos |
| Website | www.devbankphil.com.ph |
The Development Bank of the Philippines, commonly known by its initials, DBP, is a bank in the Philippines owned by the Philippine government. It is the seventh-largest bank in the Philippines in terms of assets and is the second-largest government-owned bank, next only to Landbank. It is also one of the largest government-owned and/or controlled corporations in the Philippines.
DBP services various sectors of Philippine society, from farmers to businessmen. Although the Philippines has an economy largely dependent on agriculture, something that Landbank addresses, DBP aims for national development through financing the various businesses and economic sectors that keep the Philippine economy afloat. Like Landbank, it provides the services of a regular universal bank; however, it is officially classified as a "specialized government bank" with a universal banking license.
Also like Landbank, DBP also has a large rural branch network. However, the aim of DBP's rural branch network is not the same as Landbank's. Instead, DBP diversifies banking choices whenever an area's banking sector is either dominated by one or a few banks, regardless of status.
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[edit] History
DBP's history can be traced back during the time of the Commonwealth of the Philippines. 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. After the war, 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. While this strategy helped accelerate capital formation and employment, especially in the countryside, the strategy eventually proved to be disastrous. By the time of Ferdinand Marcos, DBP's viability was undermined by an increasing number of non-performing accounts following a 1970s recession.
After the ouster of Marcos and the election of Corazon Aquino as president, she 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 on June 30, 1986 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.
[edit] Subsidiaries and affiliates
DBP is divided into the following subsidiaries and affiliates:
- DBP Data Center
[edit] Ownership
- Government of the Philippines: 100%
[edit] Competition
DBP competes against the major banks such as Metrobank, BPI, Equitable PCI Bank and Philippine National Bank. 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, depending on the situation involved.
