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DBP to become PH’s infra bank before yearend – DOF

By: - Reporter / @bendeveraINQ
/ 10:08 PM May 29, 2017

MANILA — The government’s plan to realign the thrust of the state-run Development Bank of the Philippines into infrastructure lending would be fleshed out by yearend even as the Department of Finance would look into possible capital infusion to support the mandate, Finance Secretary Carlos G. Dominguez III said.

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“I think, somehow, the DBP’s mandate has been forgotten through the years,” Dominguez told reporters, citing that the bank started as the Rehabilitation Finance Corp. after the Second World War to finance
reconstruction efforts before becoming the DBP in 1958 to finance industrial projects.

“It was the arm of the government to focus on financing what was their objective at that time—after the war it was building houses, and then that became trying to industrialize the Philippines,” the Finance
chief noted.

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“Now, the focus of the government—and I think it’s a strong focus—is on infrastructure. So maybe we should look at the DBP as ‘the’ infrastructure bank of the Philippines,” Dominguez said.

The finance chief said he had hence urged DBP officials to embark on “serious” discussions with other infrastructure banks in the region, especially the “very successful” Japanese infrastructure bank Development Bank of Japan Inc., to enhance the lender’s move towards becoming an infrastructure bank.

Dominguez said he wanted the makeover of the DBP happening before the end of the year.

He saw no need to change the DBP’s charter. “It’s just really to say that infrastructure is going to be a major thrust of the bank’s financing… It’s just [a change in] the focus.”

As for possible capital infusion, Dominguez said “we have to study that definitely and if, in fact, they will need and it’s requested we will take a look at it.”  SFM

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TAGS: banks, Business, Carlos G. Dominguez III, Construction, Department of Finance, Development Bank of the Philippines, economy, Finance, Financial Institutions, Infrastructure, infrastructure development
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