The Philippines Department of Finance highlighted that the Land Bank of the Philippines and the Development Bank of the Philippines remain strongly capitalised against Bangko Sentral ng Pilipinas requirements, while pressing for Congressional approval of amendments to both banks’ charters to further strengthen their financial standing. As of end-November 2024, LANDBANK reported a Capital Adequacy Ratio of 16.42% and DBP 14.78%, both above the 10% regulatory threshold. The proposed charter amendments would enable the banks to access private capital by offering a portion of their shares to the public, including increases in authorised capital stock offered to the public, and would streamline LANDBANK’s bond issuance process in a manner similar to DBP to facilitate more efficient capital raising and reduce reliance on national government support or dividend relief.
Department of Finance (Philippines) 2025-01-02
Philippines Department of Finance pushes charter amendments to let LANDBANK and DBP tap private capital via public share offerings
The Philippines Department of Finance reported that the Land Bank and Development Bank of the Philippines exceed the Bangko Sentral ng Pilipinas' 10% regulatory threshold with Capital Adequacy Ratios of 16.42% and 14.78%, respectively. The department is advocating for Congressional approval of charter amendments to allow these banks to access private capital and streamline bond issuance processes, enhancing their financial standing and reducing reliance on government support.