Manila: The House of Representatives: The House of Representatives on Tuesday approved on third and final reading a measure seeking to establish a new charter for the Development Bank of the Philippines (DBP) to strengthen its role as the country’s premier financial institution for national development.

According to Philippines News Agency, with 199 affirmative votes, three negative votes and zero abstentions, the Chamber passed House Bill (HB) 11230, which aims to empower the DBP to provide development financing and financial services to strategic sectors, including infrastructure, micro, small and medium enterprises (MSMEs), education, healthcare, housing, environmental protection, and other social services.

The bill seeks to repeal Executive Order 81, the 1986 Revised Charter of the DBP. Once HB 11230 is enacted into law, the state-owned bank will be equipped with enhanced powers to promote global competitiveness and financial viability.

The DBP, under the bill, shall serve as a national development policy bank for the implementation of government policies on priority area financing, enhanced competition in financial markets, and the promotion of financial sector development that would lead to improvements in capital allocation and macroeconomic stability.

The measure proposes to increase DBP’s authorized capital stock from PHP50 billion to PHP300 billion. Of this amount, PHP32 billion, or 10.67 percent, would be subscribed and fully paid by the national government. It shall allow the DBP to allocate its unrestricted earnings for the increase in the paid-up capital stock of the national government.

Government-owned and controlled corporations, including government financial institutions, shall be authorized to invest in the shares of stocks of the DBP. In September last year, the Senate approved Senate Bill 2804, also known as the New DBP Act.