Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
Second Regular Session 
HOUSE BILL NO. 10817
Introduced by Representative WOWO FORTES 
___________________________________________________________________ 
EXPLANATORY NOTE 
The Development Bank of the Philippines (DBP) is a government-owned 
financial institution established in 1958 to provide credit and financial services to 
support national development efforts. One of its primary goals is to finance projects 
that contribute to the country’s economic growth, infrastructure development, and 
social progress. 
DBP offers various services— including loans, equity investments, and other 
financial products tailored to the needs of the public. Under its current charter, the DBP 
is classified as a development bank and may perform all other functions of a thrift 
bank. 
It is noteworthy that DBP plays a critical role in supporting our country’s national 
development goals. However, its current charter, as provided by Executive Order No. 
81 of 1986 and amended in 1998 by Republic Act No. 8523, still limits its operations. 
The present charter sets the capital stock of the DBP at Thirty-Five Billion Pesos 
(P35,000,000,000.00). Moreover, its provisions on corporate governance are not in 
line with those currently being observed.  
Hence, this bill aims to provide a new charter for DBP as it seeks to clarify and 
expand the Bank’s mandate, raise its capital stock to Three-Hundred Billion Pesos 
(P300,000,000,000.00), ensure government representation on its board, and increase 
the penal provisions on conflict of interest.  
In view of the foregoing, the approval of this bill is earnestly sought. 
ATTY. WOWO FORTES 
  Representative 
 Second District, Province of Sorsogon 
August 27, 2024
1:23 pm


Nineteenth Congress of the 
Republic of the Philippines 
Third Regular Session 
HOUSE OF REPRESENTATIVES 
H.B. No. 10817 
Introduced by Representative WOWO FORTES 
AN ACT PROVIDING FOR A NEW CHARTER FOR 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 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 Bank’s 
important role in catalyzing economic development through its financing and 
assistance to strategic sectors of the economy.  
The State shall support the Bank 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. 
SEC. 4. Primary Objective of the Bank. – As a government financial institution, and a 
partner in national development, the Bank shall support the programs of the 
government that propel economic growth and increase productivity such as the 
development of infrastructure, expansion of businesses especially micro, small and 
medium enterprises, and high-impact programs in education, health care, housing, 
other social services and those that support the protection of the environment. 
Provided, that this objective shall be pursued with utmost consideration of the need 
and responsibility to preserve and protect the financial viability of the Bank while 
ensuring that it remains globally competitive. It shall at all times safeguard its financial 
position in order that it can effectively participate in the accomplishment of the national 
goal of attaining meaningful and inclusive economic growth.  


 
DBP shall serve as a national development policy bank to support and implement 
government policies on the direction of financial flows to priority areas, enhance 
competition in financial markets, and promote financial sector development leading to 
capital allocation improvements thereby contributing to macroeconomic stability. 
 
SEC. 5. Principal Office, Branches, and other Offices. – The Bank’s principal office 
and place of business shall be in Metro Manila. It may open and maintain branches 
and agencies in accordance with applicable regulations of the Bangko Sentral ng 
Pilipinas (BSP). 
 
SEC. 6. Corporate Powers. – In addition to the general powers of a corporation under 
Republic Act No. 11232 otherwise known as the “Revised Corporation Code of the 
Philippines”, the Bank shall have the power to:  
 
(a) Accept deposits as are allowed under existing law and BSP regulations, 
including but not limited to demand, savings, and time deposits; 
(b) Grant loans and other credit accommodations for the establishment, 
development or expansion of infrastructure, tourism, energy development 
and environmental projects, social services, micro, small and medium 
enterprises, and agencies of the government, including local government 
units (LGU) and government-owned and controlled corporations (GOCC), 
among other sectors, and exercise all such powers and services as may 
be necessary to carry out the business of a bank under Republic Act No. 
8791 or “The General Banking Law of 2000” subject to the existing rules 
and regulations of the Monetary Board 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, and 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; to adopt, alter and use a seal; to 
lease or own real and personal property and to sell or otherwise dispose 
of the same; to make contracts; to sue and be sued; and to exercise the 
general powers of a corporation mentioned in the Revised Corporation 
Code of the Philippines, 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 from the Government Service Insurance System (GSIS) or other 
reputable insurance companies duly accredited by the appropriate 
regulatory body, directors, officers and liability insurance coverage, 
without prejudice to the right of the Bank, as may be determined by its 
Board of Directors, to put up its own legal insurance fund; 
(g) Hold, purchase, acquire and own real and personal property, introduce 
necessary improvements thereon to enhance and develop their social and 
economic value, and to sell, mortgage or otherwise dispose of the same; 


 
(h) Dispose of its acquired assets which shall not be subject to any injunction 
or restraining order issued by any court, commission, tribunal or office 
which shall bar, impede or delay the sale and disposition thereof except 
on questions of ownership and national or public interest; and 
(i) 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 
recommendation of the Board of Directors and in accordance with 
applicable laws, rules and regulations. 
The holders of preferred shares shall be nonvoting. Other features of preferred shares 
shall be determined by the Board of Directors in accordance with applicable laws and 
regulations. 
 
Unless otherwise provided for in this Act, the exercise of the above-mentioned powers 
shall be subject to applicable laws, rules and regulations as well as regulations 
promulgated by the BSP. 
 
SEC. 7. Authorized Capital Stock - Par Value. – The capital stock of the Bank shall be 
Three Hundred Billion Pesos (Php300,000,000,000.00) to be divided into Three Billion 
(3,000,000,000) shares, with par value of One Hundred Pesos (Php100.00) per share. 
The Board shall determine the classification of shares, their corresponding rights, 
privileges, or restrictions, if any: Provided, That, the National Government shall own, 
at all times, seventy percent (70%) of the total outstanding capital stock of the Bank.  
 
Thirty-Two Billion Pesos (Php32,000,000,000.00) or ten and 67/100 percent (10.67%) 
of the authorized capital stock of the Bank, shall be subscribed and fully paid by the 
National Government. 
 
When dividends are declared for stockholders, the dividend due to the National 
Government shall at all times be in proportion to its ownership of the Bank.  
 
The Board, upon the recommendation of the Secretary of Finance and with the 
approval of the President of the Philippines, may increase the capitalization of the 
Bank up to such an amount as may be necessary to attain the objectives of this 
Charter, and may allocate part or all of the Bank's unrestricted retained earnings 
towards paying for the increase in capital. 
 
SEC. 8. Investment by Government-Owned or Controlled Corporations and the 
General Public. – The provisions of their respective charters to the contrary 
notwithstanding, all government-owned or -controlled corporations, including 
government financial institutions, are authorized to invest in shares of stock of the 
Bank. 
 
SEC. 9. Voting of Shares. – The voting power of all the common shares of stock of the 
Bank owned and controlled by the government shall be vested in the President of the 
Philippines or in any ex-officio member of the Board of Directors. 
 
SEC. 10. Issuance of Bonds, Eligible Capital Instruments, and other Securities. – The 
Bank may issue all kinds of bonds, notes, debentures, other evidences of 
indebtedness, derivatives, commodities, negotiable instruments, eligible capital 


 
instruments and other securities, and the renewal or refunding thereof within and/or 
outside the Philippines, at such terms, rates, and conditions as the Board may 
determine, subject to compliance with the provisions of applicable laws, and rules and 
regulations promulgated by the Monetary Board.  
 
The Bank shall acquire, assign, or otherwise dispose of marketable securities and 
other debt instruments which are essential to the effective conduct of its general 
banking activities. 
 
The Bank shall provide for appropriate reserves, as necessary, for the redemption or 
retirement of the foregoing. These bonds and other obligations shall be redeemable 
at the option of the Bank at or before maturity and in such manner as may be stipulated 
therein and shall bear such rate of interest as may be fixed by the Bank.  
 
Such obligations shall be secured by the assets of the Bank, including the stocks, 
bonds, debentures, and other securities purchased or held by it under the provisions 
of this Act, as necessary to ensure the successful issuance of such obligations. These 
bonds and other obligations may be long-term, medium, or short-term, with fixed 
interest rate or floating interest rate.  
 
SEC. 11. Board of Directors, Composition, Tenure, and Per Diems. – The powers and 
functions of the Bank shall be vested in and exercised by a Board of Directors which 
shall 
be 
composed 
of 
nine 
(9) 
members 
as 
follows:  
 
(a) The Secretary of Finance who shall be the ex-officio Chairperson of the 
Board, without compensation; 
(b) The Secretary of Trade and Industry, as an ex-officio member; 
(c) Five (5) regular directors and two (2) independent directors to be 
appointed by the President of the Philippines in accordance with the 
appointment process under RA No. 10149. 
 
The ex-officio directors may each designate an alternate, who shall be an official with 
a rank not lower than Assistant Secretary.  
 
The Chairperson shall preside over the meetings of the Board.  
 
The President of the Bank shall be the Vice-Chairperson of the Board. In case the 
Chairperson is absent or incapacitated, the President shall act as Chairperson and 
preside over the meetings of the Board. In case of incapacity or absence of both the 
Chairperson and the Vice-Chairperson, the Board shall designate a temporary 
chairperson from among its members. 
 
No person shall be elected or appointed director of the Bank unless such person is a 
Filipino citizen, of good moral character, and has attained proficiency, expertise and 
recognized competence in one or more of the following:  banking, finance, economics, 
law, business management, governance, sustainability, digital transformation, rural 
economy, banking, co-operation, small-scale industry, information technology, and 
information security. 
 


 
Except for the President, no incumbent officer or employee of the Bank may be 
appointed as a member of the Board; nor shall any incumbent officer of any other bank 
be eligible as a member of the Board.  
 
The President and Chief Executive Officer (CEO) shall be elected annually by the 
members of the Board in accordance with Section 13 hereof.  
 
The term of office of the President and the other members of the Board of Directors 
shall be for a period of one year or until such time that their successors are appointed 
and have qualified. 
 
The compensation, per diems, allowances, incentives, and other benefits, for the 
members of the Board shall be subject to the provisions of RA No. 10149. 
 
SEC. 12. Powers and Duties of the Board of Directors. – The Board shall have the 
following duties, powers and authority:  
 
(a) Formulate policies necessary to carry out effectively the provisions of this 
Charter and to prescribe, amend, and repeal by-laws, rules and 
regulations for the effective operation of the Bank, and the manner in 
which the general business of the Bank may be conducted, and the 
powers granted by law to the Bank are exercised;  
(b) Approve loans, other credit accommodations and guarantees issued or 
obtained by the Bank, and prescribe terms and conditions to govern the 
granting of the foregoing, and engage in such other financial activities 
under such terms and conditions as it as may be deemed necessary, 
consistent with the provisions of this Act and the existing 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 which the Board shall 
determine to be necessary and convenient in accordance with applicable 
rules and regulations of the BSP; 
(f) Appoint, promote or remove employees and officers of the Bank, 
Provided, That promotions, transfers, assignments or reassignments of 
officers and personnel of the Bank are personnel actions deemed made 
in the interest of the service, any provision of the Civil Service Law to 
contrary notwithstanding;  
(g) Notwithstanding any law to the contrary, adopt an organizational structure, 
staffing pattern and personnel qualification standards of the Bank and to 


 
reorganize, rationalize and restructure the same, or realign the various 
functions in the Bank to ensure effective accomplishment of its mandates 
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 RA No. 10149.  
(h) Design, adopt and revise, as it may deem necessary, an early separation 
plan for employees of the Bank to ensure the availability of a human 
resource pool qualified and capable of implementing the Bank's 
authorities under this Charter in a manner responsive and attuned to 
market developments, and to provide incentives for those who shall be 
separated from the service, subject to the provisions of RA No. 10149. 
(i) Maintain, manage, and operate the existing “Provident Fund” of the Bank, 
which shall consist of contributions, made both by the Bank and its officers 
or employees, to a common fund for the payment of benefits to such 
officers and employees, or their heirs, under such terms and conditions 
consistent with RA No. 10149 and Executive Order No. 150, s. 2021 
otherwise known as the Compensation and Position Classification System 
(CPCS) and Index of Occupational Services, Position Titles, and Job 
Grades for GOCCs (IOS-G) Framework; and  
(j) Perform other functions, duties and responsibilities necessary, related and 
incidental to the above-mentioned powers and functions. 
 
The Board shall exercise its powers in a manner consistent with the principles of 
transparency, fairness and accountability: Provided, That, the Board may delegate its 
powers to the President as may be deemed necessary. 
 
SEC. 13. President and Chief Executive Officer. – The President of the Bank shall be 
the Chief Executive Officer who shall be elected by the Board from among themselves 
with the written advice and consent of the President of the Philippines. No person shall 
be appointed President of the Bank unless of good moral character and reputation, 
with at least ten (10) years of previous experience in banking, and has a reputed 
proficiency, expertise and recognized competence in banking or financial 
management.  
 
The President shall, among other powers and duties, execute, carry out, and 
administer the policies, measures, orders and resolutions approved by the Board; 
direct and supervise the operation and administration of the Bank; and exercise such 
other powers and perform such other function or duty as may be directed or assigned 
by law, regulations, executive issuances or by the Board from time to time.  
 
The President shall be assisted by Vice Presidents and other officials whose 
appointment and removal for cause shall be approved by the Board of Directors upon 
recommendation of the President of the Bank. The salary of the President, Vice 
President, and other officials shall be subject to the provisions of RA No. 10149. During 
the absence or temporary incapacity of the President, or in case of vacancy or 
permanent Incapacity and pending appointment of a new President of the Bank, the 
Board of Directors shall designate the officer-in-charge of the Bank. 
 
The President shall have the following powers and duties to:  


 
(a) Sign and execute all contracts concluded by the Bank and enter into all 
necessary obligations required or permitted by this Act; and sign all notes, 
securities certificates, and other major documents of the Bank;  
(b) Exercise, as Chief Executive Officer of the Bank, the powers of control 
and supervision over decisions and actions of subordinate officers, and all 
other powers that may be granted by the Board;  
(c) Report to the Board the main facts concerning the operations of the Bank 
and to recommend changes in policies which one may deem advisable;  
(d) Submit an annual report to the President of the Philippines on the result 
of the operations of the Bank; and  
(e) As required by circumstances, delegate any of the powers, duties or 
functions to any officer or director of the Bank.  
 
SEC. 14. Qualifications of Executive Officers. – No person shall be appointed to any 
executive position in the Bank mentioned in the preceding section unless that person 
is of good moral character and of unquestionable integrity and responsibility, and who 
is of recognized competence in the field of economics, agriculture, industry, law, 
banking or finance, information technology, information security, and possessed of 
demonstrated administrative skill and ability. 
 
SEC. 15. Legal Matters and Cases. – Any provision of existing law or executive order 
to the contrary notwithstanding, the Bank shall have its own Legal Department which 
shall have the power to represent the Bank in cases filed before courts, tribunals, and 
quasi-judicial bodies, render opinions, prepare and review contracts/agreements. The 
Head and members of the Legal Department shall be appointed by the Board of 
Directors. 
 
In appropriate cases, the Bank may also avail of the legal services of external counsel, 
subject to the approval of the Board and the Office of the Government Corporate 
Counsel (OGCC): Provided, however, That the present Legal Services Group in the 
Bank shall serve as its in-house legal counsel. 
 
The Bank may, upon the recommendation of its chief legal counsel, deputize any 
member of its legal staff to act as special sheriff in foreclosure cases, in the sale or 
attachment of the debtor's properties and in the enforcement of court writs and 
processes in cases involving the Bank. The special sheriff of the Bank shall make a 
report to the proper court after any action taken by him, which shall treat such action 
as if it were an act of its own sheriffs in all respects.  
 
The sale of mortgaged properties under the provisions of existing laws or of this Act 
shall be conducted under the direction of the sheriff of the province or any special 
sheriff of the Bank, or of a municipal judge or notary public of the city or municipality 
where the sale is to be made, who shall be entitled to collect the fees provided for in 
the Rules of Court with respect to sale of properties under execution. 
 
SEC. 16. Disposal of Real Estate and Other Properties in the Collection of Debt. – 
Real estate and other properties acquired by the Bank in the collection of debts or 
investment by way of foreclosure or other means shall be sold or disposed of in 
accordance with law, within five (5) years after their respective dates of acquisition.  
 


 
For this purpose, the Board of Directors shall be the appropriate regulatory authority 
and promulgate the necessary implementing rules and regulations. 
 
SEC. 17. Exemption from Attachment. – The provisions of any law to the contrary 
notwithstanding, collaterals, securities on loans or other credit accommodations and 
guarantees granted by the Bank or its predecessors-in-interest shall not be subject to 
attachment, execution, stay order or any other court process, nor shall they be 
included in the property of insolvent persons or institutions, unless all debts and 
obligations of the debtor to the Bank and its predecessors-in-interest have been 
previously paid, including accrued interest, penalties, collection expenses, and other 
charges. 
 
No attachment or execution shall be issued against the Bank or its property before 
final judgment in any suit, action or proceeding in any court.  
 
Moreover, there shall also be no restraining order, temporary or permanent injunction, 
and/or stay order issued by the court against the Bank in any action taken to foreclose 
the collateral or security for the loan, whether such a restraining order, temporary or 
permanent injunction, and/or stay order is sought by the borrower(s) or any third party 
or parties, except after a due hearing in which it is established by the borrower and 
admitted by the Bank that at least twenty percent (20%) of the total loan obligations 
have been paid after the filing of foreclosure proceedings. 
 
SEC. 18. Right of Redemption. – Any individual or juridical mortgagor of the Bank 
whose real property has been judicially sold at public auction, or any individual 
mortgagor of the Bank whose real property has been extra-judicially sold at public 
auction shall, within one (1) year counted from the date of registration of the certificate 
of foreclosure sale with the applicable Register of Deeds, have the right to redeem the 
real property by paying to the Bank all of the latter's claims as determined by the Bank.  
 
Notwithstanding the provisions of Act No. 3135 entitled “An Act to Regulate the Sale 
of Property Under Special Powers Inserting In or Annexed to Real Estate  Mortgage”, 
as amended, juridical mortgagors whose real property has been extrajudicially sold at 
public auction shall have the right to redeem the property until, but not after, the 
registration of the certificate of foreclosure sale with the applicable Register of Deeds, 
which registration shall in no case be more than three (3) months from the date of 
foreclosure, whichever is earlier.   
 
The Bank may take possession of the foreclosed property during the redemption 
period. When the Bank takes possession during such period, it shall be entitled to the 
fruits of the property with no obligation to account for them, the same being considered 
compensation for the interest that would otherwise accrue on the account. Neither 
shall the Bank be obliged to post a bond for the purpose of such possession.  
 
SEC. 19. Human Resource. – The Board shall provide for an organization and staff of 
officers and employees of the Bank and upon the recommendation of the President.  
 
All positions in the Bank shall be governed by the provisions of RA No. 10149. 
 


 
The Bank officers and employees, including all members of the Board, shall not 
engage directly or indirectly in partisan political activities or take part in any election 
except to vote. 
 
No officer or employee of the Bank subject to Civil Service Law 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 good corporate citizens. The Governing Board of the Bank shall 
recognize and perform obligations that the Bank has towards the National 
Government, its majority stockholder, as well as the minority stockholders when 
existing, together with the employees, suppliers, customers and other stakeholders, 
and the communities in which it operates. 
 
SEC. 21. Inhibition from Board Meeting of Member with Personal Interest. – Whenever 
any member attending a meeting of the Board of Directors, or any of one’s relatives 
within the second civil degree of consanguinity or affinity has a personal or pecuniary 
interest, direct or indirectly, in any matter in the agenda of the Board meeting or in the 
discussion or resolution of any given matter, said 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 of Directors present in the meeting should still constitute a quorum despite the 
inhibition of the member with personal or pecuniary interest 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 upon or the determination of any 
question affecting one’s direct personal interest or the personal interests 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 person violating the provision of this section shall be removed 
from office and shall upon conviction be punished with a fine of not less than Fifty 
Thousand pesos (P50,000) nor more than Two Million pesos (P2,000,000) or by 
imprisonment of not less than two (2) years nor more than ten (10) years, or by both 
fine and imprisonment at the discretion of the court.  
 
SEC. 23. Borrowing by Directors, Officers and Employees; Restriction and Limitation. 
– No (1) director or officer or employee of the Bank; or (2) any corporation, partnership, 
or company wherein any member of the Bank’s Board of Directors, officer or employee, 


 
or their relatives within the first civil degree of consanguinity or affinity is a director, 
officer or controlling shareholder either directly or indirectly, for one’s self or as 
representative or agent of others, borrow any of the deposits of funds from the Bank, 
nor shall he become a guarantor, or in any manner be an obligor for money borrowed 
from the Bank or loaned by it: Provided, That this prohibition on loans to directors, 
officers and employees shall not include loans allowed in the form of fringe benefits 
granted in accordance with rules and regulations as may be prescribed by the 
Monetary Board: Provided, further, That this prohibition shall not apply to loans to 
corporations wherein the director, officer or employee of the Bank sits on the board of 
the borrower corporation to represent the interest of the Bank. 
 
SEC. 24. Rules and Regulations on Conflict of Interest. – The Board of Directors is 
hereby authorized to issue rules and regulations for the purposes of determining and 
resolving conflict of interest questions, which rules shall, in particular, include the 
requirement on all officers and employees of the Bank to disclose any shareholdings 
they, or their relatives within the second civil degree of consanguinity or affinity, may 
have in any corporation, partnership, or company in excess of two percent (2%) of the 
equity of said corporation, partnership, or company or in any related party transactions 
defined by the Monetary Board of the BSP and the Board of Directors of the Bank.  
 
SEC. 26. 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, and any officer, employee, or agent of the Bank found 
guilty of exacting, demanding, or receiving any fee services in obtaining any service or 
transaction from the Bank, shall be punished by a fine of not less than Fifty Thousand 
pesos (P50,000) nor more than Two Million pesos (P2,000,000), imprisonment for not 
less than six (6) years and one (1) month nor more than fifteen (15) years, and 
perpetual disqualification from public office and confiscation or forfeiture in favor of the 
government of any prohibited interest and unexplained wealth.  
 
SEC. 27. 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 and may warrant relaxation of the regulatory ratios.   
 
SEC. 28. General Penal Provisions. – Any director, officer or employee of the Bank 
who violates, or permits any of the officers, employees or agents of said Bank or any 
other person to violate, any of the provision of this Act not specifically punished in the 
preceding sections and any person violating any provision of this Act or aiding and 
abetting the violation thereof, shall be punished with a fine not less than Fifty Thousand 
pesos (P50,000) nor more than Two Million pesos (P2,000,000) or by imprisonment 
for not less than two (2) years nor more than ten (10) years, or both, at the discretion 
of the court.  
 
SEC. 29. Other Liability of Guilty Officer or Employee. – Any member of the Board of 
Directors or 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. 30. 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, the directors, officers or partners hereof who participated in the violation 
shall be criminally liable for such violation.  
 
SEC. 31. Applicability of Banking Laws. – The provisions of RA No. 7653, otherwise 
known as the New Central Bank Act, as amended by RA No. 11211, RA 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 RA No. 8791, in relation to Sections 34, 35, 36 and 
37 of RA No. 7653, as amended by RA No. 11211 shall be applicable to directors, 
officers, employees and borrowers of the Bank. 
 
SEC. 32. 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 fresh 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. 
 
All those 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 for under existing laws and/or supplementary 
retirement plans adopted by and effective in the Bank. 
 
SEC. 33. Control Over Subsidiaries and Dividends from Subsidiaries. – Pursuant to 
Section 6(e) of this Act and notwithstanding any law, rule, regulation or practice to the 
contrary, the Bank, thru its President and CEO, shall have control over its subsidiaries 
and shall appoint the members of its board of directors based on the number of shares 
of stock standing in the Bank’s own name in the stock books of the subsidiaries: 
Provided, That the Bank may temporarily appoint directors to its subsidiaries in cases 
where urgent action is needed from the subsidiaries’ board and the present number of 
directors does not constitute a quorum.  Every subsidiary shall declare and remit at 
least fifty percent (50%) of its annual net earnings as cash, stock or property dividends, 
without impairing its viability and the purposes for which it has been established, to 
DBP as the parent corporation: Provided, That the percentage of annual net earnings 
that shall be declared by such subsidiary may be adjusted by the President and CEO. 
 
SEC. 34. Transfer of Assets and Liabilities of the Development Bank of the Philippines. 
– The Bank shall transfer to the National Government its assets and liabilities as may 
be necessary to commence its operations under this Act on a viable basis, as 
determined by the appropriate authorities.  Such assets to include, but need not be 
limited to its acquired assets and non-performing accounts, and such liabilities, to 
include real as well as contingent liabilities. The National Government is hereby 


 
authorized to accept the same under terms and conditions as may be mutually 
acceptable to the Bank and the National Government, and shall be subject to 
applicable laws, rules and regulations. 
 
SEC. 35. Maintenance, Care and Preservation of Assets Transferred to the National 
Government. – The Bank is hereby authorized to enter into an agreement with the 
National Government as transferee of assets from the Bank as herein provided, either 
as an interim arrangement or otherwise and under such terms and conditions as may 
be necessary to preserve, maintain and/or to dispose of such assets transferred to the 
National Government. 
 
SEC. 36. Separability Clause. – In the event that any provision of this Act or the 
applicability of such provisions to any person or circumstances is declared invalid, the 
remainder of the Act or the application of said provision to other persons or 
circumstances shall not be affected by such declaration.  
 
SEC. 37. Repealing Clause. – Executive Order No. 81, as amended, and Republic Act 
No. 8523 are hereby repealed. and Any other laws, rules and regulations which may 
be inconsistent with any of the provisions of this Act, are hereby amended accordingly.   
 
SEC. 38. Effectivity. – This Act shall take effect fifteen (15) days after its publication in 
the Official Gazette or in a newspaper of general circulation in the Philippines. 
 
Approved,