THE Land Bank of the Philippines (LandBank) and the Development Bank of the Philippines (DBP) have maintained their strong financial position, making them more well-equipped to provide more services to Filipinos, according to the Department of Finance (DOF).
The DOF on Thursday, January 2, said that both banks’ capital adequacy ratio (CAR) have consistently met and exceeded the minimum requirements of the Bangko Sentral ng Pilipinas (BSP).
The DOF said that as of end-November 2024, LandBank’s CAR was at 16.42 percent, while the DBP’s level is at 14.78 percent.
These are both well above the 10 percent regulatory threshold.
“The solid financial footing of LANDBANK and DBP reaffirms their indispensable role in advancing the nation’s progress. This allows them to continuously adhere to prudent financial management practices and effectively utilize their resources to deliver more support to Filipinos, especially in key sectors like infrastructure; agriculture; fisheries; micro, small, and medium enterprises, and many more,” Finance Secretary Ralph Recto said.
LandBank president and CEO Lynette Ortiz said that the bank’s robust financial health and consistent revenue growth will allow them to fulfill their mandate and serve as a dependable partner in the national government’s inclusive development agenda.
DBP president and CEO Michael de Jesus, meanwhile, assured the public that the DBP remains financially strong and more than capable to support President Ferdinand R. Marcos, Jr.’s 10-point economic agenda.
De Jesus said the DBP will also continue to pursue its mandate and serve the needs of its clients and stakeholders.
To further strengthen the financial standing of state banks, the DOF is advocating for Congressional approval of amendments to the charters of the LandBank and the DBP.
A key feature of these amendments is enabling the banks to access private capital by offering a portion of their shares to the public.
Both banks are proposed to increase their authorized capital stock offering to the public.
The DOF said the proposed amendments to the LandBank’s charter include a provision to streamline the bond issuance process, similar to that of the DBP.
According to the DOF, this will allow the banks to access capital more efficiently, reducing their reliance on national government support or dividend relief. (PNA)
