Development Bank of the Philippines

The Countrys Premier Development Bank

n the Philippines, development financing institutions play a pivotal role in the quest for sustainable growth and development. And at the helm of the countrys march toward progress is the Development Bank of the Philippines. As the countrys pre-eminent development financial institution, DBP has taken upon itself the strategic task of influencing and accelerating sustainable economic growth, through the provision of resources, for the continued well-being of the Filipino people.
The DBP, under its new charter, is classified as a development bank and may perform all other functions of a thrift bank. Its primary objective is to provide banking services principally to cater to the medium and long-term needs of agricultural and industrial enterprises with emphasis on small and medium-scale industries. The affairs and business of the Bank are directed, and its properties managed and preserved, and its corporate powers exercised by a Board of Directors consisting of nine (9) members appointed by the President of the Republic of the Philippines. The Chief Executive Officer of the Bank is also the President who is elected by the Board of Directors. The President is also the Vice Chairman of the Board.

DEVELOPMENT THRUSTS
DBP is the countrys major conduit of international funds from multilateral and bilateral institutions for official development assistance (ODA) programs and grants. DBP also continues its development thrusts on economic pump-priming and program-type lending to strategic sectors of the country. The Banks development thrusts are primarily focused on five priority areas: social services, environment, infrastructure & logistics, micro-SMEs, and industrial lending. DBP recognizes small and medium enterprises (SMEs) as a potent force in spurring development. DBP promotes the Big Brother-Small Enterprise program through the purchase of suppliers-SME receivables from accredited corporate buyers in the manufacturing, construction, wholesale and retail trade, transport and communication industries. DBP also has a credit facility to support the One Town, One Product (OTOP) program of the Department of Trade and Industry that promotes entrepreneurial endeavors in the countryside through the use of locally available raw materials and inherent human resources. DBP also continues to assist large industries as they are strategic and essential in paving the way for the growth and development of SMEs. DBP lends to projects in health care, education, housing and community development, improving access to shelter by the poor, infrastructure and community facilities in major cities and municipalities. In support of the National Governments Strong Republic Nautical Highway project, DBP launched the Sustainable Logistics Development Program (SLDP). The program aims to improve the countrys basic infrastructure for the efficient movement of basic commodities and to bring down the cost of goods, through the introduction of a modern storage, handling and transport system under proper quality control management. The program has three components: the Road Ro-Ro Terminal System, Bulk Grains Highway and the Cold Chain Highway. The program is expected to stimulate economic activities in nearby areas by lowering transport costs and travel time, providing greater mobility, and opening up new markets for agri-products and tourism-oriented SMEs.

DBP also vigorously pursues its commitment to environmental protection and sustainable development. DBP is one of the first Philippine banks to integrate environmental considerations in all aspects of its operations. DBP provides financing as well as technical assistance to projects that are environmentally sound. The Bank also plays an active role in encouraging clients, and its participating financial institutions (PFIs) under its wholesale lending program, to include environmental considerations in their business and thrusts. DBPs Environmental Management System (EMS) has also been re-certified by AJA Registrars. The Bank thus still holds the distinction of being the first Philippine Bank to be ISO 14001 certified since 2002.

HEAD OFFICE: Sen. Gil J. Puyat Avenue cor. Makati Avenue, Makati City, Philippines Tel.: 818-9511 to 20 / 818-9611 to 20 E-mail: info@devbankphil.com.ph Website: www.devbankphil.com.ph

Member: Philippine Deposit Insurance Corporation (Maximum Deposit Insurance for each Depositor: P500,000.00)

HISTORY
DBPs history can be traced back to the Commonwealth years when the early infrastructure for development financing was laid down by the government. 1935 - The National Loan and Investment Board (NLIB) was created to coordinate and manage government trust funds such as the Postal Savings Fund and the Teachers Retirement Fund. 1939 - The Agricultural and Industrial Bank (AIB), which absorbed the functions of the NLIB, was created and started to harness government resources until the outbreak of war. 1947 - On January 2, the government created the Rehabilitation Finance Corporation (RFC) under R.A. No. 85 which absorbed the assets and took over the functions of the AIB. The RFC provided credit facilities for the development of agriculture, commerce and industry and the reconstruction of properties damaged by the war. 1958 - The RFC was reorganized into the Development Bank of the Philippines. With an initial capital of P500 million subscribed by the government, the DBP expanded its facilities and operations to accelerate national development efforts. This forward thrust saw the establishment of a network of branches throughout the country. The DBP tapped both foreign and local fund sources to complement its capital resources. Credits were obtained directly from international financial institutions. The DBP delivered to the economy substantial benefits in capital formation, employment generation and increased revenues, particularly in the countryside. In the late seventies and early eighties, however, its viability was undermined by an increasing number of non-performing accounts following a period of economic difficulty. 1986 - Former President Corazon Aquino issued E.O. No. 81 which provided for the 1986 Revised Charter that called for a clean up of DBPs books, staff reorganization, and infusion of initial operating budget. The rehabilitation program restored financial viability and DBP resumed lending operations. With the transfer of non-performing assets together with liabilities on June 30, 1986 to the national government, the DBP implemented an institutional strengthening program covering a thorough revision of the credit process and a training program for the intensive implementation of new lending thrusts. The Bank likewise reopened its lending windows for housing, agriculture, and small and medium scale industries. 1995 - The DBP was granted an expanded banking license and attained universal banking status. 1998 - Former President Fidel V. Ramos signed R.A. 8523 amending DBPs 1986 Charter. Among the major provisions incorporated in the new DBP Charter were the increase of authorized capital stock from P5 billion to P35 billion, and the creation of the position of President and CEO. DBP today has evolved into the countrys premier development financial institution. DBP continues to post record growth in its financial performance while ably assisting the various development thrusts of the national government.

DBP LOGO
The DBP logo creates an impression of the Banks renewed spirit and dynamism amid changing times. It includes the colors blue and red adapted from the Philippine flag to strengthen DBPs reputation as a development institution focused on the wellbeing of the Filipino. The DBP logo includes DBPs original geometrical symbol that represents the forerunners of the Bank. Set against a blue background, the geometrical symbol is colored platinum to suggest the Banks adherence to the highest standards in mobilizing resources for economic growth. The DBP logo adds a subtle red curvature which suggests the dawning of a new day, a promise of a secure tomorrow that DBP aspires to achieve for every Filipino

AWARDS AND CITATIONS

Through the years, DBP has been a recipient of numerous awards and recognitions, among them:
Association of Development Financing Institutions in Asia and the Pacific 2009 Most Outstanding Corporate Social Responsibility Project 2008 Most Outstanding Human Resource Development Award 2007 Outstanding Corporate Governance Award 2006 Environmental Development Project Award 2004 Plaque of Merit under the Infrastructure Development category Technology Development Award for 2003 Human Resource Development Award for 2003 20th Century Achievement Award for Founding Members Environmental Development Award for 2002 The Asian Banking Awards 2004 Best Development Project Financing Program 2001 Most Outstanding Environmental Program for the New and Renewable Energy Financing Program The Asian Banker 300 Strongest Bank in the Philippines (2003) based on financial and operational measures, asset quality, and year-on-year improvements in profits and assets Hewitt and Associates 6th Best Employer in the Philippines for 2003 (DBP was the only bank and government agency to earn the distinction) World Bank Citation 2000 Recognition of Excellence for the efficient administration of the US$23 million first tranche of the LGU Urban Water and Sanitation Program International Ratings 2007 The Asset Magazine -Triple A House and Deal Awards Best Project Finance/Best Privatization for the Magat hydropower privatization project financing