Development Bank of the Philippines
The Development Bank of the Philippines (Filipino
Filipino language
This move has drawn much criticism from other regional groups.In 1987, a new constitution introduced many provisions for the language.Article XIV, Section 6, omits any mention of Tagalog as the basis for Filipino, and states that:...

: Bangko sa Pagpapaunlad ng Pilipinas, Castillian Spanish: Banco de Agricola y Hacienda de Filipinas or Banco de Desarollo de Filipinas), commonly known by its initials, DBP, is a state-owned development bank
Development bank
The phrase development bank may refer to:* Community development banks fund low-income areas in the United States* Multilateral Development Bank provide financing for international development...

 in Makati, Philippines
The Philippines , officially known as the Republic of the Philippines , is a country in Southeast Asia in the western Pacific Ocean. To its north across the Luzon Strait lies Taiwan. West across the South China Sea sits Vietnam...


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
Land Bank of the Philippines
Land Bank of the Philippines , also known as LANDBANK or by its initials, LBP, is a bank in the Philippines owned by the Philippine government with a special focus on serving the needs of farmers and fishermen...

. It is also one of the largest government-owned and/or controlled corporations (GOCCs) in the Philippines.

Core functions

DBP services various sectors of Philippine society, from farmers to businessmen. Although the Philippines has an economy
Economic system
An economic system is the combination of the various agencies, entities that provide the economic structure that defines the social community. These agencies are joined by lines of trade and exchange along which goods, money etc. are continuously flowing. An example of such a system for a closed...

 largely dependent on agriculture
Agriculture is the cultivation of animals, plants, fungi and other life forms for food, fiber, and other products used to sustain life. Agriculture was the key implement in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that nurtured the...

, 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
Universal bank
A universal bank participates in many kinds of banking activities and is both a commercial bank and an investment bank.The concept is most relevant in the United Kingdom and the United States, where historically there was a distinction drawn between pure investment banks and commercial banks. In...

; 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.


DBP's history can be traced back during the time of the Commonwealth of the Philippines
Commonwealth of the Philippines
The Commonwealth of the Philippines was a designation of the Philippines from 1935 to 1946 when the country was a commonwealth of the United States. The Commonwealth was created by the Tydings-McDuffie Act, which was passed by the U.S. Congress in 1934. When Manuel L...

. 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
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...

. After the war, in 1947, the AIB was abolished and the Rehabilitation Finance Corporation was formed in its place by Republic Act
Republic Acts of the Philippines
This article contains a partial list of Philippine laws. Philippine laws have had various nomenclature designations at different periods in the history of the Philippines, as shown in the following table:...

 No. 85, absorbing the powers and functions of the AIB. The RFC provided credit
Credit (finance)
Credit is the trust which allows one party to provide resources to another party where that second party does not reimburse the first party immediately , but instead arranges either to repay or return those resources at a later date. The resources provided may be financial Credit is the trust...

 facilities for the development of agriculture, commerce
While business refers to the value-creating activities of an organization for profit, commerce means the whole system of an economy that constitutes an environment for business. The system includes legal, economic, political, social, cultural, and technological systems that are in operation in any...

 and industry
Industry refers to the production of an economic good or service within an economy.-Industrial sectors:There are four key industrial economic sectors: the primary sector, largely raw material extraction industries such as mining and farming; the secondary sector, involving refining, construction,...

 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
Financial capital
Financial capital can refer to money used by entrepreneurs and businesses to buy what they need to make their products or provide their services or to that sector of the economy based on its operation, i.e. retail, corporate, investment banking, etc....

 of 500 million pesos
Philippine peso
The peso is the currency of the Philippines. It is subdivided into 100 centavos . Before 1967, the language used on the banknotes and coins was English and so "peso" was the name used...

, 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
Ferdinand Marcos
Ferdinand Emmanuel Edralin Marcos, Sr. was a Filipino leader and an authoritarian President of the Philippines from 1965 to 1986. He was a lawyer, member of the Philippine House of Representatives and a member of the Philippine Senate...

, DBP's viability was undermined by an increasing number of non-performing accounts following a 1970s recession
In economics, a recession is a business cycle contraction, a general slowdown in economic activity. During recessions, many macroeconomic indicators vary in a similar way...


After the ouster of Marcos and the election of Corazon Aquino
Corazon Aquino
Maria Corazon Sumulong Cojuangco-Aquino was the 11th President of the Philippines and the first woman to hold that office in Philippine history. She is best remembered for leading the 1986 People Power Revolution, which toppled Ferdinand Marcos and restored democracy in the Philippines...

 as president
President of the Philippines
The President of the Philippines is the head of state and head of government of the Philippines. The president leads the executive branch of the Philippine government and is the commander-in-chief of the Armed Forces of the Philippines...

, 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
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...


Organizational structure

The DBP Head Office in Makati exercises control and supervision of all DBP branch offices throughout the Philippines. The Board of Directors decides on policy matters to be carried out by the President and Chief Executive Officer. The President delegates policy and administrative directives to Executive Vice Presidents and Senior Vice Presidents manning specialized Departments of the bank. The Managers and Assistant Managers supervise the Division Chiefs in implementing daily tasks handled by rank-and-file personnel.

Key officials

As a state-owned financial institution, the Philippine President carries the power of appointing key officials of the bank, including the Chairman of the Board, the President and Chief Executive Officer, the Directors, and the Chief Legal Counsel. Past DBP presidents were former cabinet secretaries, corporate managers, economists, and international finance executives.

As of September 2010, the key officials of the bank include:
  • Jose A. Nuñez, Jr. - Chairman, Board of Directors
  • Francisco F. Del Rosario, Jr. - President and Chief Executive Officer

Subsidiaries and affiliates

DBP is divided into the following subsidiaries and affiliates:
  • Al-Amanah Islamic Investment Bank of the Philippines
    Al-Amanah Islamic Investment Bank of the Philippines
    The Al-Amanah Islamic Investment Bank of the Philippines or Al-Amanah Islamic Bank is the first and only Islamic bank in the Philippines.-History:...

  • DBP Data Center
  • DBP Insurance Brokerage, Inc.


DBP competes in bank marketing against the largest commercial banks such as Metrobank
Metropolitan Bank and Trust Company
The Metropolitan Bank and Trust Company , commonly known as Metrobank. It has a diverse offering of financial services, from regular banking to insurance. Metrobank is the second largest bank in the Philippines.-History:...

Bank of the Philippine Islands
Bank of the Philippine Islands is the oldest bank in the Philippines still in operation and is the country's third largest bank in terms of assets, the country's largest bank in terms of market capitalization, and the country's most profitable bank...

, Equitable PCI Bank
Equitable PCI Bank
Equitable PCI Bank was one of the largest banks in the Philippines, being the third-largest bank in terms of assets. With PCI Bank the largest bank before it was overtaken by Metrobank in 1995. It is the result of the merger of Equitable Banking Corporation and Philippine Commercial International...

 and Philippine National Bank
Philippine National Bank
The Philippine National Bank is one of the largest banks in the Philippines, ranking fourth in terms of assets...

. Outside the Metro Manila
Metro Manila
Metropolitan Manila , the National Capital Region , or simply Metro Manila, is the metropolitan region encompassing the City of Manila and its surrounding areas in the Philippines...

 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, as the need arises.

See also

  • Patricia Santo Tomas
    Patricia Santo Tomas
    Patricia Aragon Santo Tomas is the Chairman of the Board of Development Bank of the Philippines since 2006.She has been a Secretary of Labor and Employment and Chairwoman of the Philippine Civil Service Commission for several years.-Education:...

  • Land Bank of the Philippines
    Land Bank of the Philippines
    Land Bank of the Philippines , also known as LANDBANK or by its initials, LBP, is a bank in the Philippines owned by the Philippine government with a special focus on serving the needs of farmers and fishermen...

  • List of Philippine companies
  • MegaLink
    MegaLink is an interbank network connecting the ATM networks of nineteen* members in the Philippines with a total of more than 2,921* ATMs nationwide and handling more than 795,000* transactions a day...

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