DoF proposes higher capital for state banks
THE PROPOSED amendments to the charters of Land Bank of the Philippines (LANDBANK) and the Development Bank of the Philippines (DBP) seek to increase the lenders’ capitalization to P1 trillion and P300 billion, respectively.
“I think we finalized it already… I think P300 billion for DBP and then P1 trillion for LANDBANK, if I’m not mistaken,” Finance Secretary Ralph G. Recto told reporters late on Wednesday.
These would be well above LANDBANK’s current P200-billion authorized capital stock and DBP’s P35-billion capitalization.
Mr. Recto said the proposal has been finalized and has been presented to the Senate.
The Department of Finance (DoF) earlier floated proposals to amend the state banks’ charters to increase their capitalization and allow them to publicly list on the stock exchange.
DBP earlier said it is looking to raise 20% of its capital stock from its initial public offering.
LANDBANK’s net income rose by 11% to P12 billion in the first quarter.
Meanwhile, the DBP’s first-half income in 2023 jumped by 60% to P4.42 billion. — Luisa Maria Jacinta C. Jocson