TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
;-;'v 
;
25 JUL 14 P4:12
S. No.
SENATE
584
RECtiU
Introduced by SENATOR MARK A. VILLAR
AN ACT
PROVIDING FOR A NEW CHARTER OF THE DEVELOPMENT BANK OF THE 
PHILIPPINES/ REPEALING FOR THE PURPOSE EXECUTIVE ORDER NO. 81/
AS AMENDED
EXPLANATORY NOTE
In 1946, Republic Act No. 85 created the Rehabilitation Finance Corporation 
(RFC) to provide credit facilities to rehabilitate war-destroyed enterprises and expand 
the country's industrial potential. It was then reorganized into what is now the 
Development Bank of the Philippines (DBP) and shifted from rehabilitation to more 
diverse activities.
From then and after undergoing several charter revisions, DBP has been at the 
forefront of strengthening the country's economic growth through broader financial 
inclusion and sustainable infrastructure development. As of March 2024, DBP now has 
more of less one hundred forty (140) financial centers and branches, thirty two (32) 
lending centers, eight hundred ninety-nine (899) automated teller machines and three 
thousand one hundred fifteen (3,115) employees.
As of December 2023, record shows that fifty five per cent (55%) of DBP's 
Development Loan Portfolio goes to infrastructure & logistics sectors, while twenty 
one (21%) is allocated for social infrastructure owing to its goal of focusing on sectors 
with the biggest and most immediate impact on every Filipino's well-being.
Given the evolving dynamics of the banking sector and DBP's vital role as a 
government financial institution, there is a need to revise its current charter. Amending


the DBP Charter will lead to an increase in funds to assist the government in pursuing 
economic growth and development, promoting economic empowerment and 
inclusivity, thereby effectively serving a wider spectrum of clients and supporting job 
creation and enhanced productivity across various industries in the economy.
Specifically, this bill aims to increase the authorized capital stock of DBP 
enabling it to pursue growth initiatives which in turn will help expand local capital 
markets and create more opportunities for the public and private sectors to access 
development financing.
Further, by allowing the potential Initial Public Offering (IPO), DBP can leverage 
IPO proceeds to reinforce its commitment to rural development and support for Micro, 
Small, md Medium Enterprises (MSMEs) and serve as crucial resources for financing 
large-scale infrastructure projects.
This strategic approach ensures DBP's ability to fulfill its developmental 
mandate efficiently, maintaining robust profitability and a stable financial position.
In view of the foregoing, the approval of this bill is earnestly sought.
MARK A. VILLAR (Zoo


TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
of I i
25 JUL 14 P4-.12
RECEiVtu ciV
SENATE
S. No.
r*84
Introduced by Senator MARK A. VILLAR
AN ACT
PROVIDING FOR A NEW CHARTER OF THE DEVELOPMENT BANK OF THE 
PHILIPPINES, REPEALING FOR THE PURPOSE EXECUTIVE ORDER NO. 81,
AS AMENDED
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
1 
Section 1. Short Title. - This Act shall be known as " The New Development
2 
Bank of the Philippines (DBP) Act".
3 
Sec. 2. Declaration of Policy. - It is hereby declared the policy of the State to
4 
strengthen the powers and functions of its premier government developmental
5 
financial institution that provides developmental financing and financial services
6 
necessary for the achievement of sustained economic growth. The State recognizes
7 
the financial institution's important role in catalyzing economic development through
8 
its financing and assistance to strategic sectors of the economy, while ensuring that
9 
such development is aligned with environmental sustainability.
10 
Towards this end, the State shall support the financial institution in its pursuit
11 
of social progress through initiatives that enhance the welfare of the Filipino people,
12 
especially the underprivileged.
13 
Sec. 3. Name and Corporate Existence. - The Development Bank of the
14 
Philippines, hereinafter referred to as the Bank, shall henceforth operate under the
15 
provisions of this Act. The Bank shall continue to exist as a body corporate and shall
16 
have perpetual existence from the date of effectivity of this Act. The Governance
17 
Commission for Government-Owned or -Controlled Corporations (GCG) shall not be
1


1 
precluded from evaluating the performance and determining the relevance of the Bank
2 
as a government-owned or -controlled corporation (GOCC) in accordance with
3 
Republic Act No. 10149, otherwise known as the "GOCC Governance Act of 2011".
4 
Sec. 4. Primary Objective of the Bank. - As a government financial institution
5 
and partner in national development, the Bank shall support the programs of the
6 
government that propel economic growth and increase productivity such as the
7 
development of infrastructure, expansion of businesses, especially micro, small, and
8 
medium enterprises (MSMEs), and high-impact programs in education, health care,
9 
housing, other social services, and those that support the protection of the
10 
environment: Provided, That this objective shall be pursued with utmost consideration
11 
of the need and responsibility to preserve and protect the financial viability of the Bank
12 
while ensuring its global competitiveness. It shall at all times safeguard its financial
13 
position so that it can effectively participate in attaining the national goal of meaningful
14 
and inclusive economic grov\rt:h. The Bank shall also adopt policies on digitalization to
15 
improve operational efficiency and governance while promoting financial inclusion.
16 
The Bank shall serve as a national development policy bank to support and
17 
implement government policies on directing financial flows to priority areas, enhancing
18 
competition in financial markets, and promoting financial sector development leading
19 
to capital allocation improvements, thereby contributing to macroeconomic stability.
20 
Sec. 5. Principai Office, Branches, and other Offices. - The Bank's principal
21 
office and place of business shall be in Metro Manila. It may open and maintain
22 
branches and agencies in accordance with applicable rules and regulations of the
23 
Bangko Sentral ng Pilipinas (BSP).
24 
Sec. 6. Corporate Powers. - In addition to the general powers of a corporation
25 
under Republic Act No. 11232, otherwise known as the "Revised Corporation Code of
26 
the Philippines", the Bank shall have the power to:
27 
(a) Accept deposits allowed under existing laws and BSP regulations, including
28 
but not limited to demand, savings, and time deposits;
29 
(b) Grant loans and other credit accommodations for the establishment,
30 
development, or expansion of physical and digital infrastructure, tourism,
31 
energy development, water supply and environmental projects, social services,
32 
MSMEs, and agencies of the government, including local government units


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TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
S. No.
Introduced by Senator MARK A. VILLAR
AN ACT
PROVIDING FOR A NEW CHARTER OF THE DEVELOPMENT BANK OF THE 
PHILIPPINES, REPEALING FOR THE PURPOSE EXECUTIVE ORDER NO. 81,
AS AMENDED
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
Section 1. Short Title. - This Act shall be known as " The New Development 
Bank of the Philippines (DBP) Act".
Sec. 2. Declaration of Policy. - It is hereby declared the policy of the State to 
strengthen the powers and functions of its premier government developmental 
financial institution that provides developmental financing and financial services 
necessary for the achievement of sustained economic growth. The State recognizes 
the financial institution's important role in catalyzing economic development through 
its financing and assistance to strategic sectors of the economy, while ensuring that 
such development is aligned with environmental sustainability.
Towards this end, the State shall support the financial institution in its pursuit 
of social progress through initiatives that enhance the welfare of the Filipino people, 
especially the underprivileged.
Sec. 3. Name and Corporate Existence. - The Development Bank of the 
Philippines, hereinafter referred to as the Bank, shall henceforth operate under the 
provisions of this Act. The Bank shall continue to exist as a body corporate and shall 
have perpetual existence from the date of effectivity of this Act. The Governance 
Commission for Government-Owned or -Controlled Corporations (GCG) shall not be
1


1 
precluded from evaluating the performance and determining the relevance of the Bank
2 
as a government-owned or -controlled corporation (GOCC) in accordance with
3 
Republic Act No. 10149, otherwise known as the "GOCC Governance Act of 2011".
4 
Sec. 4. Primary Objective of the Bank. - As a government financial institution
5 
and partner in national development, the Bank shall support the programs of the
6 
government that propel economic growth and increase productivity such as the
7 
development of infrastructure, expansion of businesses, especially micro, small, and
8 
medium enterprises (MSMEs), and high-impact programs in education, health care,
9 
housing, other social services, and those that support the protection of the
10 
environment: Provided, That this objective shall be pursued with utmost consideration
11 
of the need and responsibility to preserve and protect the financial viability of the Bank
12 
while ensuring its global competitiveness. It shall at all times safeguard its financial
13 
position so that it can effectively participate in attaining the national goal of meaningful
14 
and inclusive economic growth. The Bank shall also adopt policies on digitalization to
15 
improve operational efficiency and governance while promoting financial inclusion.
16 
The Bank shall serve as a national development policy bank to support and
17 
implement government policies on directing financial flows to priority areas, enhancing
18 
competition in financial markets, and promoting financial sector development leading
19 
to capital allocation improvements, thereby contributing to macroeconomic stability.
20 
Sec. 5. Principal Office, Branches, and other Offices. - The Bank's principal
21 
office and place of business shall be in Metro Manila. It may open and maintain
22 
branches and agencies in accordance with applicable rules and regulations of the
23 
Bangko Sentral ng Pilipinas (BSP).
24 
Sec. 6. Corporate Powers. - In addition to the general powers of a corporation
25 
under Republic Act No. 11232, otherwise known as the "Revised Corporation Code of
26 
the Philippines", the Bank shall have the power to:
27 
(a) Accept deposits allowed under existing laws and BSP regulations, including
28 
but not limited to demand, savings, and time deposits;
29 
(b) Grant loans and other credit accommodations for the establishment,
30 
development, or expansion of physical and digital infrastructure, tourism,
31 
energy development, water supply and environmental projects, social services,
32 
MSMEs, and agencies of the government, including local government units


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31
32
(LGUs) and GOCCs, among other sectors, and exercise all such powers and 
services as may be necessary to carry out the business of a bank under Repubiic 
Act No. 8791, otherwise known as "The General Banking Law of 2000", subject 
to the existing rules and regulations of the Monetary Board of the BSP, in order 
to perform its mandate under this Act;
(c) Act as official government depository with authority to maintain deposits 
and deposit substitutes of the National Government, its agencies, bureaus, and 
instrumentalities, GOCCs, LGUs, and autonomous regions, as well as other 
territorial and political subdivisions, subject to such rules and regulations as the 
Monetary Board may prescribe;
(d) Accept and manage trust funds and properties, and carry on the business 
of a trust corporation;
(e) Adopt, amend, or change its by-laws; adopt, alter and use a seal; lease or 
own real and personal property and to sell or otherwise dispose of the same; 
make contracts; sue and be sued; and exercise the general powers of a 
corporation mentioned in Republic Act No. 11232, including the power to 
acquire or establish subsidiaries registered with the Securities and Exchange 
Commission (SEC) with the right to receive dividends from such subsidiaries in 
accordance with Section 33 hereof;
(f) Obtain Directors' and Officers' Liability Insurance (DOLI) coverage from the 
Government Service Insurance System (GSIS) or other reputable insurance 
companies duly accredited by the appropriate reguiatory body, without 
prejudice to the right of the Bank to put up its own legal insurance fund, as 
may be determined by its Board of Directors;
(g) Engage in financial leasing of movable and immovable properties in 
connection with government projects;
(h) Hold, purchase, acquire, and own real and personal property; introduce 
necessary improvements thereon to enhance and develop their social and 
economic value; and sell, mortgage, or otherwise dispose of the same;
(i) 
Dispose of its acquired assets;
(j) Offer and issue common and preferred shares of stocks in such manner and 
in such quantities as approved by the Secretary of Finance, upon the


1 
recommendation of the Board, and in accordance with applicable laws, rules,
2 
and regulations. The preferred shares shall be non-voting. The Board shall
3 
determine other features of the preferred shares in accordance with applicable
4 
laws and regulations; and
5 
(k) Engage internationally recognized auditing firms as the Bank's external
6 
auditor to audit its financial statements, in case the Bank issues shares to the
7 
public.
8 
Unless otherwise provided in this Act, the exercise of the above-mentioned
9 
powers shall be subject to applicable laws, rules, and regulations, including those
10 
promulgated by the BSP.
11 
Sec. 7. Authorized Capital Stock - Par Value. - The capital stock of the Bank
12 
shall be Three hundred billion pesos (P300,000,000,000.00) divided into Three billion
13 
(3,000,000,000) shares, with a par value of One hundred pesos (PIOO.OO) per share.
14 
The Board shall determine the classification of shares, their corresponding rights,
15 
privileges, or restrictions, if any: Provided, That the National Government shall own,
16 
at all times, at least seventy percent (70%) of the total outstanding capital stock of
17 
the Bank.
18 
Thirty-two billion pesos (P32,000,000,000.00), or ten and 67/100 percent
19 
(10.67%) of the authorized capital stock of the Bank, shall be subscribed and fully
20 
paid by the National Government: Provided, That the Bank may allocate part or all of
21 
its unrestricted retained earnings towards increasing the National Government's paid-
22 
up capital stock.
23 
When dividends are declared for stockholders, the dividend due to the National
24 
Government shall at all times be in proportion to its ownership of the Bank.
25 
Sec. 8. Investment by Government-Owned or Controlled Corporations. - Unless
26 
otherwise provided in their respective charters, all GOCCs, including government
27 
financial institutions, are authorized to invest in shares of stock of the Bank.
28 
Sec. 9. Voting of Shares. - The voting power of all the common shares of stock
29 
of the Bank owned and controlled by the National Government shall be vested in the
30 
President of the Philippines or in any ex officio member of the Board to the extent of
31 
the shareholdings of the national government in accordance with Republic Act No.
32 
10149.


1 
Sec. 10. Issuance of Bonds, Eligible Capital Instruments, and other Securities.
2 
- The Bank may issue all kinds of bonds, notes, debentures, other evidence of
3 
indebtedness, derivatives, commodities, negotiable instruments, eligible capital
4 
instruments, and other securities, and the renewal or refunding thereof within and/or
5 
outside the Philippines, at such terms, rates, and conditions as the Board may
6 
determine, subject to compliance with the provisions of applicable laws, and rules and
7 
regulations promulgated by the Monetary Board of the BSP.
8 
The Bank shall acquire, assign, or otherwise dispose of marketable securities
9 
and other debt instruments which are essential to the effective conduct of its general
10 
banking activities.
11 
The Bank shall provide for appropriate reserves, as necessary, for the
12 
redemption or retirement of the foregoing. These bonds and other obligations shall be
13 
redeemable at the option of the Bank at or before maturity and in such manner as
14 
may be stipulated therein and shall bear such rate of interest as may be fixed by the
15 
Bank.
16 
Such obligations shall be secured by the assets of the Bank, including the
17 
stocks, bonds, debentures, and other securities purchased or held by it under the
18 
provisions of this Act, as necessary to ensure the successful issuance of such
19 
obligations. These bonds and other obligations may be long-, medium-, or short-term,
20 
with a fixed or floating interest rate.
21 
Sec. 11. Board of Directors, Composition, Tenure, and Per Diems. - The powers
22 
and functions of the Bank shall be vested in and exercised by a Board of Directors
23 
which shall be composed of nine (9) members as follows;
24 
(a) The Secretary of Finance who shall be the ex officio Chairperson of the
25 
Board;
26 
(b) The Secretary of the National Economic and Development Authority, as an
27 
ex officio member; and
28 
(c) Four (4) regular directors and three (3) independent directors to be
29 
appointed by the President of the Philippines in accordance with the
30 
appointment process and the Fit and Proper Rule under Republic Act No. 10149.


1 
In the event that private persons acquire shares of stock of the Bank, there
2 
shail be two (2) additional members of the Board of Directors who shall be qualified
3 
and elected in accordance with Republic Act No. 11232.
4 
The 
directors may each designate an alternate, who shall be an official
5 
with a rank not lower than Assistant Secretary.
6 
The Chairperson shall preside over the meetings of the Board. The President of
7 
the Bank shall be the Vice Chairperson of the Board. In case the Chairperson is absent
8 
or incapacitated, the President shall act as Chairperson and preside over the meetings
9 
of the Board. In case of incapacity or absence of both the Chairperson and the Vice
10 
Chairperson, the Board shall designate a temporary chairperson from among its
11 
members.
12 
No person shall be elected or appointed director of the Bank unless such person
13 
is a Filipino citizen, of good moral character, and has attained proficiency, expertise
14 
and recognized competence in one (1) or more of the following: banking, finance,
15 
economics, law, business management, governance, sustainability, digital
16 
transformation, rural economy, co-operation, small-scale industry, information
17 
technology, and information security.
18 
Except for the President, no incumbent officer or employee of the Bank may be
19 
appointed as a member of the Board; nor shall any incumbent officer of any other
20 
bank be eligible as a member of the Board.
21 
The President and Chief Executive Officer (CEO) shall be elected annually by
22 
the members of the Board in accordance with Section 13 hereof.
23 
The term of office of the President and the other members of the Board shall
24 
be for a period of one (1) year or until such time that their qualified successors are
25 
appointed.
26 
Appointment to any vacancy shall be only for the unexpired term of the
27 
predecessor, pursuant to RA No. 10149.
28 
The compensation, per diems, allowances, incentives, and other benefits for
29 
the members of the Board shall be subject to the provisions of RA No. 10149.
30 
Sec. 12. Powers and Duties of the Board. - The Board shall have the following
31 
duties, powers, and authority:


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(a) Formulate policies necessary to effectively carry out the provisions of this 
Act and to prescribe, amend, and repeal by-laws, rules, and regulations for the 
effective operation of the Bank, the conduct of its general business, and the 
exercise of powers granted by law to the Bank;
(b) Decide on matters concerning loans, other credit accommodations, and 
guarantees issued or obtained by the Bank, and prescribe terms and conditions 
to govern the grant of the foregoing, and engage in such other financial 
activities under such terms and conditions as it may deem necessary, consistent 
with the provisions of this Act, banking laws, and regulations promulgated by 
the Monetary Board: Provided, That the Board may delegate the authority to 
approve loans, other credit accommodations, and guarantees to such officers 
as may be deemed necessary;
(c) Adopt an annual budget upon the recommendation of the President for the 
effective operation and administration of the Bank;
(d) Compromise or release, in whole or in part, any claim or settled liability to 
the Bank, regardless of the amount involved, under such terms and conditions 
it may impose to protect the interests of the Bank. This authority to compromise 
shall extend to claims against the Bank: Provided, That the Board may delegate 
the authority to compromise or release any claim or settled liability to the 
President or such other officers of the Bank as may be deemed necessary;
(e) Establish such branches, agencies, and other offices deemed necessary and 
convenient in accordance with applicable rules and regulations of the BSP;
(f) Notwithstanding any law to the contrary, adopt an organizational structure, 
staffing pattern, and personnel qualification standards for the Bank, reorganize, 
rationalize, and restructure the same, or realign the various functions in the 
Bank to ensure effective accomplishment of its mandate and strategic goals, 
the alignment of its organizational structure and staffing pattern with industry 
standards, and its responsiveness to regulatory requirements, subject to the 
provisions of Republic Act No. 10149, to meet the operational demands, 
maintain service quality, and support the expansion of the developmental 
mandate of the Bank;


1 
(g) Design, adopt, and revise, as it may deem necessary, an early separation
2 
plan for employees of the Bank to ensure the availability of a human resource
3 
pool qualified and capable of implementing the Bank's authorities under this
4 
Charter in a manner responsive and attuned to market developments; and
5 
provide incentives for those who shall be separated from the service, subject
6 
to the provisions of Republic Act No. 10149;
7 
(h) Maintain, manage, and operate the existing "Provident Fund" of the Bank,
8 
which shall consist of contributions, made both by the Bank and its officers or
9 
employees, to a common fund for the payment of benefits to such officers and
10 
employees, or their heirs, under such terms and conditions consistent with
11 
Republic Act No. 10149; and
12 
(i) Perform other functions, duties, and responsibilities necessary, related, and
13 
incidental to the above-mentioned powers and functions.
14 
The Board shall exercise its powers in a manner consistent with the principles
15 
of transparency, fairness, and accountability: Provided, That the Board may delegate
16 
its powers to the President as may be deemed necessary.
17 
Sec. 13. President and Chief Executive Officer. - The President of the Bank shall
18 
be the CEO who shall be elected annually by the members of the Board from among
19 
its ranks. The President and CEO shall be subject to the disciplinary powers of the
20 
Board pursuant to the provisions of Republic Act No. 10149. No person shall be
21 
appointed President of the Bank unless of good moral character and reputation, with
22 
at least ten (10) years of previous experience in banking, and has a reputed
23 
proficiency, expertise, and recognized competence in banking or financial
24 
management.
25 
The President shall execute, carry out, and administer the policies, measures,
26 
orders, and resolutions approved by the Board; direct and supervise the operation and
27 
administration of the Bank; and exercise such other powers and perform such other
28 
functions or duties as may be directed or assigned by law, regulations, or executive
29 
issuances.
30 
The President shall be assisted by Vice Presidents and other officials. The salary
31 
of the President, Vice President, and other officials shall be subject to the provisions
32 
of Republic Act No. 10149. During the absence or temporary incapacity of the
8


1 
President, or in case of vacancy or permanent incapacity and pending appointment of
2 
a new President of the Bank, the Board shall designate the Officer-in-Charge of the
3 
Bank.
4 
The President shall have the powers and duties to:
5 
(a) Sign and execute all contracts concluded by the Bank; enter into all
6 
necessary obligations required or permitted by this Act; and sign all notes,
7 
securities certificates, and other major documents of the Bank;
8 
(b) Exercise, as CEO of the Bank, the powers of control and supervision over
9 
decisions and actions of subordinate officers, and all other powers that may be
10 
granted by the Board;
11 
(c) Report to the Board the main facts concerning the operations of the Bank
12 
and recommend changes in policies which are deemed advisable;
13 
(d) Appoint, promote, or remove employees and officers of the Bank: Provided,
14 
That promotions, transfers, assignments, or reassignments of officers and
15 
personnel of the Bank are personnel actions deemed made in the interest of
16 
the service, any provision of the civil service laws to contrary notwithstanding;
17 
(e) Determine the rates of allowances, honoraria, and such other additional
18 
compensation of the Bank's technical staff and consultants, subject to the
19 
approval of the GCG, as provided under Republic Act No. 10149;
20 
(f) Submit an annual report to the President of the Philippines and Congress on
21 
the result of the operations of the Bank; and
22 
(g) As required by circumstances, delegate any of the powers, duties, or
23 
functions to any officer or director of the Bank.
24 
Sec. 14. Qualifications of Executive Officers. - No person shall be appointed to
25 
any executive position mentioned in the preceding section unless qualified by the Fit
26 
and Proper Rule, in accordance with Republic Act No. 10149 and the civil service laws,
27 
rules, and regulations: Provided, That in determining whether a person is fit and
28 
proper for a particular position, the following shall be considered: integrity or probity,
29 
physical and mental fitness, relevant education, training, and competencies to the job,
30 
such as knowledge and expertise, skills, and diligence to fully carry out responsibilities.
31 
Sec. 15. Legal Matters and Cases. - Any provision of existing law or executive
32 
order to the contrary notwithstanding, the Bank shall have its own Legal Department


1 
which shall have the power to represent the Bank in cases filed before courts,
2 
tribunals, and quasi- judicial bodies, render opinions, and prepare and review
3 
contracts/agreements. The Head of the Legal Department shall be appointed by the
4 
President.
5 
In appropriate cases, the Bank may also avail of the legal services of external
6 
counsel, subject to the approval of the Board and the Office of the Government
7 
Corporate Counsel (OGCC): Provided, however, That the present Legal Services Group
8 
in the Bank shall serve as its in- house legal counsel and the principal law office of the
9 
Bank.
10 
The Bank may, upon the recommendation of its Legal Department, deputize
11 
any member of its legal staff to act as special sheriff in foreclosure cases, in the sale
12 
or attachment of the debtor's properties, and in the enforcement of court writs and
13 
processes in cases involving the Bank. After any action is taken, the special sheriff of
14 
the Bank shall make a report to the proper court, which shall treat such action as if it
15 
were an act of its own sheriff in all respects.
16 
The sale of mortgaged properties under existing laws or this Act shall be
17 
conducted under the direction of the sheriff of the province or any special sheriff of
18 
the Bank, or of a municipal judge or notary public of the city or municipality where
19 
the sale is to be made, who shall be entitled to collect the fees provided for in the
20 
Rules of Court with respect to sale of properties under execution.
21 
Sec. 16. Disposal of Real Estate and other Properties in the Collection of Debt
22 
- Real estate and other properties acquired by the Bank in the collection of debts or
23 
investment by way of foreclosure or other means shall be sold or disposed of in
24 
accordance with law, within five (5) years after their respective dates of acquisition.
25 
For this purpose, the Board shall be the appropriate regulatory authority to
26 
promulgate the necessary implementing rules and regulations.
27 
Sec. 17. Exemption from Attachment - The provisions of any law to the
28 
contrary notwithstanding, collaterals, securities on loans or other credit
29 
accommodations and guarantees granted by the Bank or its predecessors-in-interest
30 
shall not be subject to attachment, execution, stay order, or any other court process,
31 
nor shall they be included in the property of insolvent persons or institutions, unless
32 
all debts and obligations of the debtor to the Bank and its predecessors- in-interest
10


1 
have been previously paid, including accrued interest, penalties, collection expenses,
2 
and other charges.
3 
Sec. 18. Right of Redemption. - Any individual or juridical mortgagor of the
4 
Bank whose real property has been judicially sold at public auction, or any individual
5 
mortgagor of the Bank whose real property has been extra-judicially sold at public
6 
auction shall, within one (1) year from the date of registration of the Certificate of
7 
Foreclosure Sale with the applicable Register of Deeds, have the right to redeem the
8 
real property by paying to the Bank all of the latter's claims as determined by the
9 
Bank.
10 
Notwithstanding the provisions of Act No. 3135, otherwise known as "An Act to
11 
Regulate the Sale of Property Under Special Powers Inserting In or Annexed to Real-
12 
Estate Mortgages", as amended, juridical mortgagors whose real property has been
13 
extrajudicially sold at public auction shall have the right to redeem the property until,
14 
but not after, the registration of the Certificate of Foreclosure Sale with the applicable
15 
Register of Deeds, which registration shall in no case be more than three (3) months
16 
from the date of foreclosure, whichever is earlier.
17 
The Bank may take possession of the foreclosed property during the
18 
redemption period. When the Bank takes possession during such period, it shall be
19 
entitled to the fruits of the property with no obligation to account for them, the same
20 
being considered compensation for the interest that would otherwise accrue on the
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account.
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Neither shall the Bank be obliged to post a bond for the purpose of such
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possession.
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Sec. 19. Human Resource. - The Board, upon the recommendation of the
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President and CEO, shall provide for an organizational structure and staffing pattern
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of officers and employees of the Bank.
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All positions in the Bank shall be governed by the provisions of Republic Act No.
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10149.
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The Bank officers and employees, including all members of the Board, shall not
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engage, directly or indirectly, in partisan political activities or take part in any election
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No officer or employee of the Bank shall be dismissed except as provided by
law.
Sec. 20. Environmental, Social, and Governance Principles. - As an integral part 
of the National Government, the Bank is inherently mandated to be socially 
responsible, to act and operate as a good corporate citizen. The Governing Board of 
the Bank shall recognize and perform obligations of the Bank towards the National 
Government - its majority stockholder, as well as minority stockholders, if any, 
together with the employees, suppliers, customers, other stakeholders, and the 
communities in which it operates.
Sec. 21. Inhibition from Board Meeting of Members with Persona! Interest - 
Whenever any member attending a meeting of the Board, or any of his or her relatives 
within the second civil degree of consanguinity or affinity has a personal or pecuniary 
interest, directly or indirectly, in any matter in the agenda of the board meeting or in 
the discussion or resolution of any given matter, the member shall disclose said 
interest to the Board and shall not participate in the discussion or resolution of the 
matter and must retire from the meeting during the deliberation thereon. The 
members of the Board present in the meeting should still constitute a quorum despite 
the inhibition of the subject member in any matter, discussion, or resolution in the 
same meeting.
The minutes of the meeting, which shall note the subject matter, the fact that 
a member had a personal interest in it, and the withdrawal of the member concerned, 
may be made available to the public.
For this purpose, the members of the Board shall, at the beginning of their 
respective terms, disclose to the Board any and all interests they may have in any 
corporation, partnership, or association and shall thereafter disclose to the Board any 
change thereto.
Sec. 22. Prohibition on Persons with Personal/Pecuniary Interest - No member 
of the Board, officer, attorney, agent, or employee of the Bank shall, in any manner, 
directly or indirectly participate in the deliberation or determination of any question 
affecting his or her direct personal interest or that of relatives within the second civil 
degree of consanguinity or affinity, or of any corporation, partnership, or association 
in which the member, officer, attorney, agent, or employee has a direct interest. Any
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person violating the provision of this section shall be removed from office and shall,
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upon conviction, be penalized with a fine of not less than Fifty thousand pesos
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(P50,000.00) but not more than Two million pesos (P2,000,000.00), imprisonment of
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not less than two (2) years but not more than ten (10) years, or both, at the discretion
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of the court.
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Sec. 23. Prohibition Against Owning Stock in or Incurring Indebtedness to the
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Bank. - The Governor of the BSP, all other members of the Monetary Board, and the
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head of the auditing department of the Bank are hereby prohibited from owning stock
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in the Bank, or from becoming indebted to the Bank, directly or indirectly.
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Sec. 24. Borrowing by Directors, Officers and Employees; Restriction and
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Limitation. - No (1) director, officer, or employee of the Bank; or (2) corporation,
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partnership, or company wherein any member of the Bank's Board, its officer,
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employee, or their relatives within the first civil degree of consanguinity or affinity is
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a director, officer, or controlling shareholder shall, either directly or indirectly, for one's
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self or as representative or agent of others, borrow any of the deposits of funds from
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the Bank, become a guarantor, or in any manner be an obligor for money borrowed
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from the Bank or loaned by it: Provided, That this prohibition on loans to directors,
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officers, and employees shall not include loans allowed in the form of fringe benefits
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granted in accordance with 
rules and regulations as may be prescribed by the
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Monetary Board: Provided, further. That this prohibition shall not apply to loans to
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corporations, subsidiaries or affiliates of DBP wherein the director, officer or employee
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of the Bank sits on the board of the borrower corporation to represent the interest of
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the Bank.
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Sec. 25. Rules and Regulations on Conflict of Interest - The Board is hereby
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authorized to issue rules and regulations for determining and resolving conflict of
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interest questions. Such rules shall, in particular, include the requirement on all Bank
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officers and employees to disclose any shareholdings that they, or their relatives within
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the second civil degree of consanguinity or affinity, may have in any corporation,
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partnership, or company in excess of two percent (2%) of the equity of said
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corporation, partnership, or company or in any related party transactions defined by
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the Monetary Board of the BSP and the Board of the Bank.
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Sec. 26. Prohibition on Officers and Empioyees of the Bank. - Except as required 
by law, upon order of a court of competent jurisdiction, the express order of the 
President of the Philippines, or the written permission of the client, no officer or 
employee of the Bank shall reveal nor allow to be examined, inquired, or looked into, 
by any third person, government official, bureau or office any information relative to 
details of individual accounts or specific banking transactions, condition, or business 
of any of its clients, or funds, or properties belonging to private individuals in the 
custody of the Bank: Provided, That in respect to deposits of whatever nature, the 
provisions of existing laws shall apply.
This prohibition shall not apply to the exchange of confidential credit 
information among government financial institutions or among banks, in accordance 
with applicable laws.
Sec. 27. Exaction of Fee, Commission, Gift or Charge. - No unauthorized fee, 
commission, gift, or charge of any kind shall be exacted, demanded, or paid, for 
obtaining loans from the Bank. Any officer, employee, or agent of the Bank found 
guilty of exacting, demanding, or receiving any service fee for obtaining any service 
or transaction from the Bank shall be penalized by a fine of not less than Fifty thousand 
pesos (P50,000.00) but not more than Two million pesos (P2,000,000.00), 
imprisonment for a period of not less than six (6) years and one (1) month but not 
more than fifteen (15) years, perpetual disqualification from public office, and 
confiscation or forfeiture in favor of the government of any prohibited interest and 
unexplained wealth.
Sec. 28. Examination of the Bank. - The Bank shall be subject to supervision 
and examination by the appropriate department of the BSP: Provided, That in 
conducting the said examination, the BSP shall duly consider the Bank's risk-taking 
activities in furtherance of its mandate.
Sec. 29. GeneraiPenaiProvisions. - A director, officer, or employee of the Bank 
who violates or permits any of its officers, employees, agents, or any other person to 
violate any provision of this Act not specifically punished in the preceding sections, 
and any person violating or aiding and abetting the violation of this Act shall be 
penalized with a fine of not less than Fifty Thousand pesos (Php 50,000.00) but not 
more than Two Million pesos (Php 2,000,000.00), or imprisonment for a period of not
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less than two (2) years but not more than ten (10) years, or both, at the discretion of 
the court.
Sec. 30. Other Liability of Guilty Officer or Employee. - Any member of the 
Board, officer or employee of the Bank who willfully violates any of the provisions of 
this Act shall, in addition to the criminal and administrative liability resulting from such 
act, be held liable for any loss or injury suffered by the Bank as a result of such 
violation.
Sec. 31. Liability of Directors, Officers, or Partners of Offending Corporation or 
Partnership. - If the violation of the provisions of this Act is committed by a corporation 
or partnership, its directors, officers, or partners who participated in the violation shall 
be criminally liable therefor.
Sec. 32. Applicability of Banking Laws. - The provisions of Republic Act No. 
7653, otherwise known as the "New Central Bank Act", as amended by Republic Act 
No. 11211, Republic Act No. 8791, and other applicable banking laws, insofar as they 
are not in conflict with any provision of this Act, shall apply to the Bank.
The penal provisions of Section 66 of Republic Act No. 8791, in relation to 
Sections 34, 35, 36, and 37 of Republic Act No. 7653, as amended by Republic Act 
No. 11211, shall be applicable to directors, officers, employees, and borrowers of the 
Bank.
Sec. 33. Control Over Subsidiaries and Dividends from Subsidiaries.-'[he Bank, 
through its President and CEO, may temporarily appoint directors in cases where 
urgent action is needed from the subsidiaries but the present number of directors does 
not constitute a quorum.
Without impairing its viability and the purposes for which it has been 
established, every subsidiary shall declare and remit at least fifty percent (50%) of its 
annual net earnings as cash, stock, or property dividends to the Bank as the parent 
corporation: Provided, further. That the percentage of annual net earnings that shall 
be declared by such subsidiary may be adjusted by the President and CEO.
The Bank shall issue the necessary implementing rules and guidelines for this 
provision in accordance with Section 35 of this Act.
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Sec. 34. Transitory Provision. - Nothing in this Act shall operate to abolish the 
Bank and affect the validity or legality of any right, duty, or obligation created by or 
in respect of the Bank prior to the effectivity this Act.
Within one hundred eighty (180) days after the effectivity of this Act, the Bank 
is authorized to reorganize and/or rationalize the Bank's organizational structure to 
attract new and critical talents to join the Bank's workforce in response to dynamic 
industry trends; incentivize early separation of tenured employees and those with 
medical conditions who will be considered for retirement before the optional 
retirement age of sixty (60) years old; and improve headcount management and 
succession planning, subject to the provisions of Republic Act No. 10149 and 
applicable issuances by the GCG.
Employees who shall retire from the service or are separated therefrom on 
account of the reorganization of the Bank under the provisions of this Charter shall be 
entitled to all gratuities and benefits provided under existing laws and/or 
supplementary retirement plans adopted by and effective in the Bank, subject to the 
provisions of Republic Act No. 10149 and applicable issuances by the GCG.
Sec. 35. Implementing Rules and Regulations. - The Bank, upon consultation 
with and approval of the Department of Finance, shall formulate and prepare the 
necessary rules and regulations to implement the provisions of this Act within ninety 
(90) days from its effectivity.
Sec. 36. Separability Clause. - If any provision of this Act is declared invalid or 
unconstitutional, the remainder thereof not otherwise affected by shall remain in full 
force and effect.
Sec. 37. Repealing Clause. - Executive Order No. 81, as amended, is hereby 
repealed. All other laws, presidential decrees, executive orders, letters of instruction, 
proclamations, or administrative regulations that are inconsistent with any of the 
provisions of this Act, are hereby repealed, amended, or modified accordingly.
Sec. 38. Effectivity. -This Act shall take effect after fifteen (15) days following 
its publication in the Official Gazette or in a newspaper of general circulation.
Approved,
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