SOUTHERN PHILIPPINES INSTITUTE

OF SCIENCE AND TECHNOLOGY

Tia Maria Bldg. E. Aguinaldo Highway, Anabu II-A, Imus City, Cavite, 4103

COLLEGE OF BUSINESS ADMINISTRATION

DEVELOPMENT BANK OF THE

PHILIPPINES
Tagline: “We Build Possibilities”

A Report Submitted to
Southern Philippines Institute of Science and Technology
College of Business Management

In partial fulfilment for the requirements in Basic Finance

Submitted by:
Via Marie T. Tabocolde BSBA-MM II

Submitted to:
Ester C. Apao, MBA-PA, PhD*

April 2024
 DEVELOPMENT BANK OF THE PHILIPPINES (DBP)

The Development Bank of the Philippines’ new tagline, “We Build Possibilities”
underlines its commitment to support programs and initiatives that bring about opportunities
for growth for the key sectors it serves through its various lending and deposit products and
services.
In the Philippines, development financing institutions play a pivotal role in the quest
for sustainable growth and development. And at the helm of the country’s march toward
progress is the Development Bank of the Philippines. As the country’s preeminent
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.
Mission Statement
To support infrastructure development, responsible entrepreneurship, efficient social services,
and the protection of the environment.
To work for raising the level of competitiveness of the economy for sustainable growth.
To promote and maintain the highest standards of good governance.

Corporate Vision
Vision 2040
By 2040, DBP will be a world-class infrastructure and development financial institution, and
a proven catalyst for a progressive and prosperous Philippines.

HISTORY
DBP’s history can be traced back to the Commonwealth when the early infrastructure for
development financing was laid by the National 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
Teacher’s 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.
* 1946 – 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. The
change in corporate name marked the shift from rehabilitation to broader activities.
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.
* 1963 – Congress broadened DBP’s powers by increasing its capitalization to
P2-billion and borrowing capacity to 10 times its paid-in capital and surplus. The
lion’s share of funding goes to industries in need of support.
* 1966 – DBP marked its debut as an investment bank, aiming to establish a broad and
prosperous securities market.
* 1967 – DBP raised its agricultural lending by 80 percent to ensure food security,
prioritizing rice and corn production. It likewise constructed a 120-hectare Greater
Manila Food Market in Fort Bonifacio.
* 1969 – Construction of the DBP Head Office Building began, and was completed in
1971. DBP-funded projects continued to drive growth in several industries,
accounting for 94 percent of the nation’s textile outputs, 90 percent of cement, 88
percent of steel, and 80 percent of all its pulp-mill capacity.
* 1970 – The devaluation of the peso caught DBP at a vulnerable time given its
issuance of guarantees for dollar-denominated debts incurred by clients. With debts
coming due, the Bank cut down domestic lending operations and suspended almost all
new guarantees. Nevertheless, DBP projects still created 10,465 new jobs.
* 1971 – In response to the economic slowdown, DBP shifted its focus to countryside
development. Agricultural lending was directed toward food production, and
industrial lending shifted focus to industries that generated more employment and
utilized raw materials and agricultural products.
* 1973 – DBP’s capitalization was increased from P2-billion to P3-billion through
Presidential Decree 195. The Bank joined five other agencies in organizing the
Development Academy of the Philippines. Agriculture remains a top priority for DBP.
* 1977 – DBP celebrated its 30th anniversary and was recognized as Southeast Asia’s
largest development bank, with P16.7-billion in assets. In 30 years, the Bank had lent
out P11.9-billion to 419,533 borrowers. In partnership with the National Housing
Authority, DBP also established a lending program for small businesses and
homeowners.
* 1978 – DBP launched its “Study Now, Pay Later” program, benefiting students
pursuing agriculture, engineering, economics, and other courses crucial to national
development.
* 1979 – DBP spent P1.3-billion for the refinancing of large industrial accounts
temporarily distressed by the Second Oil Shock. These industries included shipping,
mining, cement, hotels, and telecommunications.
* 1980 – Amid the oil crises, DBP provided support to energy and transport services by
supporting the search and development of alternative energy sources and the
air-conditioned “Love Buses” in Metro Manila.
* 1981 – DBP served as one of the primary conduits of funds in the National
Government’s efforts to bail out many troubled corporations. Lending activities are
suspended.
* 1984 – Affected by worldwide economic difficulties, a large number of DBP-financed
projects failed to make payments and the acceptance of new loans remained
suspended. DBP suffered a loss of P1.2-billion, a first in its 38-year history.
* 1986 – Former President Corazon C. Aquino issued Executive Order No. 81 which
provided for the 1986 Revised Charter that called for a clean-up of DBP’s books, staff
reorganization, and infusion of initial operating budget. The rehabilitation program
restored the Bank’s 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, DBP implemented an institutional strengthening program
covering a revision of the credit process and a training program for the
implementation of new lending thrusts. The Bank reopened its lending windows for
housing, agriculture, and small and medium scale industries.
* 1988 – DBP resumed full development banking operations. The Bank was accredited
as a participating financial institution under the Industrial Guarantee and Loan Fund.
* 1992 – DBP was recognized as one of the World’s Top Ten Banks by The Banker. The
Bank continued to prioritize implementation of high-impact projects all over the
country.
* 1994 – DBP ranked 11th in terms of overall leadership among top Philippine
companies in the survey undertaken by the Far Eastern Economic Review in
association with Citibank.
* 1995 – DBP was granted an expanded banking license and attained universal banking
status.
* 1997 – DBP floated a 20 Billion Asian Yen Bond (US$169-million), the first of its
kind in the region. The Bank marked its 50th year by turning over a One Billion Peso
dividend check, representing 50% of its net income, and one of the biggest
contributions to the National Government among government-owned-and-controlled
corporations.
* 1998 – Former President Fidel V. Ramos signed Republic Act 8523 amending DBP’s
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 Chief Executive Officer.
* 1999 – DBP launched the LGU-Urban Water and Sanitation Project and allotted
P6-billion to the housing sector to help alleviate poverty.
* 2002 – The Bank became the first Philippine bank to be ISO 14001-certified for its
successful establishment and implementation of an Environmental Management
System.
* 2003 – The Asian Banker ranked DBP as the Strongest Bank in the Philippines for its
financial and operational parameters, asset quality, and improvements in profits and
assets from previous years. The Bank was also named 6th Best Employer in the
country in a study conducted by Hewitt Associates, the Management Association of
the Philippines, and BusinessWorld.
* 2005 – The Bank’s loan portfolio reached an all-time high of P79.3-billion. Out of the
country’s top 10 banks, DBP ranked 7th in terms of assets and 4th in terms of net
income performance.
* 2007 – DBP was conferred an Outstanding Corporate Governance award by the
Association of Development Financing Institutions in Asia and the Pacific.
* 2008 – DBP stepped up its Overseas Filipino Workers Assistance Program,
conducting a series of road shows in Hong Kong to educate migrant workers.
 * 2010 – DBP’s Quality Management System received ISO 9001:2008 certification for
remittance operations, cash management, and retail lending. The DBP Institute was
also inaugurated in Baguio City.
* 2012 – DBP successfully raised US$300-million in global dollar notes as its
contribution to the P200-billion Private-Public Partnership Projects of the Philippines.
The Bank’s water sustainability initiative in Boracay bagged an award from the
Association of Development Financing Institutions in Asia and the Pacific.
* 2015 – Largely fueled by loans, DBP’s total assets crossed the half-trillion mark at
P504-billion. Branch banking operations were intensified especially in the
countryside.
* 2017 – DBP was named “SME Bank of the Year’’ in The Asian Banker–Philippine
Country Awards.
* 2020 – DBP joined the ranks of trillion-peso banks in the country, with total assets
reaching P1.04-trillion.
* 2021 – DBP was conferred by the Department of Trade and Industry with a Philippine
Quality Award (PQA) Level 2 Award for its proficient practice of quality
management.
* These developments paved the way for the pursuit of other activities that allowed the
Bank to fulfill its development mandate more meaningfully.
Today, DBP sharpens its development focus as the country’s Infrastructure Bank. DBP
supports the National Government’s effort towards building a stronger and more resilient
Philippine economy, through broader financial inclusion and sustainable infrastructure
development.

PRODUCTS AND SERVICES OFFERED

The Development Bank of the Philippines offers a wide range of products and services that
address specific funding and banking needs of its various clients — from project financing to
a wide choice of deposit and investment products and services.

Personal Banking
● Deposit products
○ Current Account
○ Savings Account
○ Term Deposit
● ATM services
○ Cash withdrawals ○ Balance inquiry
 ○ Checkbook request (for ○ Debit Bills Payment
Checking Account) ○ Mobile Prepaid Reloading
○ PIN change ○ Point of Sale (POS)
○ Fund transfer (from DBP to ○ Internet Payment Gateway
DBP account only) ○ Inter-Bank Funds Transfer
○ DBP ATM ID Card
● Fund Transfer / Remittance services
○ DBP offers a combination of traditional and electronic-based remittance
services through our branches, Remittance Partners (like pawnshops and
Money Transfer Operators), and Correspondent Bank Accounts (through
SWIFT).
. Bank to Bank Credit
. Cash Pick-up
. Payment to institutions
○ DBP EC Banking
○ BancNet Online (BOL) is implementing a more secure two-factor
authentication (2FA) system. 2FA is an added layer of security apart from the
usual card number and PIN designed to validate that the person transacting is
the real owner of the account.
● Special/ Other Services
○ Manager’s Check
○ Demand Draft
○ Foreign Currency Denominated Bank Draft
○ Foreign Currency Exchange Dealership
○ Centralized Posting of Internal Revenue Allotment (CePIRA)
○ Servicing of Government’s Modified Disbursement Scheme
○ Acceptance of Payments/Remittances for SSS/Philhealth
○ Electronic Tax Filing and Payment System
○ NCO Collections for the Bureau of the Treasury
○ Payroll Servicing

Corporate and Institutional Banking

● Investment Banking and Capital Markets
○ Loan Syndication/Arrangement - DBP can provide loan
syndication/arrangement services for a client who is in need of significant
capital, particularly when a transaction is potentially too large for a single
lender to shoulder or is beyond the risk appetite of a sole investor.
○ Financial Packaging, Structure and Project Finance - In relation to loan
syndication/arrangement, such transactions may take the route of a limited or
non-recourse deal in order to take the form of a project finance structure. DBP
boasts a track-record of successful deals that were tailored specifically for
such projects.
 ○ Securities/Debt Underwriting/Issue Management - A client may also opt to
raise funds via the capital markets through the issuance of debt securities such
as companies that have proven ripe to reach a wider investor-base and thus
achieve a higher level of prestige loans. DBP can provide issue management
and securities marketed to targeted investors and that the needed funds are
secured for the client.
● Trade Product and Services
○ Import
· Import Letter of Credit
· Foreign Standby Letter of Credit
· Documentary Collection
· Document vs. Payment (DP)
· Document vs. Acceptance (DA)
· Direct Remittance (DR)
· Open Account (OA)
○ Export
· Export LC Advising
· Export LC Confirmation
· Export LC Negotiation
· Export Bills Purchase (EBP)
· Outward Bills for Collection (OBC)
· Inward Remittance for trade related transactions
· Inward Bills for Collection
○ Domestic
· Domestic LC
· Domestic Standby LC
● DBP Digital Banking Portal
● Electronic Banking
○ DBP Gift Card
○ Point-of-Sale (POS) Terminal for Merchant Clients
· The DBP Point of Sale (POS) is a complete payment system that
facilitates the authentication of payments using various cards issued by
any member bank of local and international networks.
· Minimizes the cash handling problems encountered such as shortages
and counterfeit bills and addresses coin sourcing requirements as well.
○ Internet Payment Gateway for Merchant Clients
· A product for payment/donation acceptance which builds good
customer relations by giving your customer alternative payment
options and convenient, fast, safe and easy way to make payments.
Allows Merchant Clients to accept card payments and donations over
the internet through the use of DBP’s Online Payment Gateway that
 can process transactions at the comfort of the user’s location whether
in the country or overseas
○ Automated Teller Machine (ATM) Installation and Management
· Perfect for Corporate clients who are availing of the DBP Payroll
Servicing. Offers installation and management of an ATM unit at a
location nearest/convenient for the customers/employees of Corporate
Clients
○ Card Acquiring Services
· Point-Of-Sale Terminals
● Whether you are a small business owner, a private company or
a government entity, DBP offers your clients an alternative way
to pay you using their ATM or VISA cards through our POS
terminal.
· Other ATM Services
● Apart from the usual cash withdrawal and balance inquiry
service, our ATM also provides other services to meet your
ever changing needs.
a. Fund Transfer – Perform fund transfer to any DBP
account or to an account maintained at a
Bancnet-member bank.
b. Prepaid Auto Load – Promptly transfer credits to your
Globe, Smart or Sun mobile phone number.
c. Bills Payment – With over 50 accredited institutions or
billers, you can now pay your bills like credit card dues,
utilities fees and many more.
d. Checkbook Reorder/ Statement Request
○ Card Issuing Services
· DBP Debit Card and DBP Prepaid Card
○ DBP EC Banking
○ DBP Electronic Cash (EC) Card
· Most convenient ATM Savings Account for OFWs and OFW
Beneficiaries.
○ Mobile Banking
· With DBP Mobile Banking service, you can now perform basic ATM
transactions such as balance inquiry, bills payment, and electronic
reloading of prepaid credits right on your mobile phone.
Development Lending
● Infrastructure and Logistics
As an archipelago of over 7,000 islands, the Philippines requires efficient and modern
transport infrastructures, logistics facilities and power infrastructures to accelerate and sustain
its socio-economic growth, improve its global competitiveness, and promote physical
integration.
DBP addresses this need through its Connecting Rural Urban Intermodal Systems Efficiently
(CRUISE) Program. This umbrella program aims to support investments that improve the
country’s primary transport infrastructure and logistics facilities to provide affordable,
reliable and safe mass transport systems; support the efficient movement of basic
commodities; bring down the costs of goods and services; and introduce sustainable storage,
handling and distribution technologies.
DBP’s financial assistance also supports the government in the implementation of reforms
and priority investment in the power sector. This would include support for increased access
to electricity services and transformation of Electric Cooperatives.
● Micro, Small and Medium Enterprises (MSMEs)
DBP fosters progress by championing Filipino entrepreneurs through its Sustainable
Enterprises for Economic Development (SEED) Program. DBP also supports the food
security and competitiveness of agriculture through its Sustainable Agribusiness Financing
Program (SAFP). Through these programs, DBP also helps communities flourish through
employment generation and support for local products.
● Environment and Climate change
Proving 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. We provide financing as well as technical assistance to projects that are
ecologically sound. We also play an active role in encouraging clients and participating
financial institutions, under our wholesale lending program, to include green considerations
in their businesses and thrusts.
■ Agroforestry Plantation Program
■ Energy Efficiency Savings (E2Save) Financing Program
● The Energy Efficiency Savings Financing Program (E2SAVE)
was designed in support of Republic Act (R.A.) 11285 (Energy
Efficiency and Conservation Act) and R.A. 11697 (Electric
Vehicle Industry Development Act)
● E2SAVE aims to improve productivity of public and private
institutions in promoting the efficient and judicious utilization
 of energy. The program ultimately seeks to help ensure the
country’s energy security and independence from the use of
imported fossil fuels.
■ DBP WATER Program
● The WATER Program supports the Philippine Development
Plan (PDP) 2017-2022 in its aim to increase the percentage of
households with access to safe water supply. It also supports
the United Nations’ Sustainable Development Goal (SDG) No.
6: Ensure access to water and sanitation for all. By 2030, the
Program is expected to have financed Php 30-Billion of
investments in water supply projects.
■ Lending Initiative for Sanitation (LINIS) Program
● It aims to contribute in the National Government’s goal of
achieving universal access to sanitation through provision of
credit assistance to local government units, water districts &
private companies.
● Social Services & Community Development
DBP lends to projects for health care, education, housing and community development. The
Bank helps provide access to shelter for the poor, while supporting the development of
infrastructure and community facilities in cities and municipalities.
1. Education Sector Support for Knowledge, Wisdom and Empowerment through
Lending Assistance (ESKWELA) Program
2. Building Affordable Homes Accessible to Every Filipino (BAHAY) Program
3. Strategic Healthcare Investments for Enhanced Lending & Development
(SHIELD)
4. DBP Rehabilitation Support Program on Severe Events (RESPONSE)
5. Sustainable Waste Management for Enhanced Environmental Protection
(SWEEP)
6. Contract-to-Sell Financing Facility for Real Estate Developers (CTS Program)
7. Assistance for Economic and Social Development (ASENSO) for Local
Government Units (LGUs) Financing Program

INTEREST RATES OFFERED TO CLIENT

 OTHER FEATURES

Beyond the standard banking products and services, the Development Bank of the Philippines
(DBP) offers some unique features geared towards its role as a development bank:
● Focus on Development Sectors: DBP prioritizes financing projects and businesses
that contribute to the Philippines' overall economic and social development. This
aligns with their core areas of infrastructure, social services, SMEs, and the
environment. They might offer special loan terms or programs for these sectors.
● Government Ownership and Support: As a government-owned and controlled
corporation (GOCC), DBP benefits from a degree of stability and may offer loan
programs or financial products aligned with government development initiatives.
● Development-Oriented Programs: DBP goes beyond just providing loans. They might
offer technical assistance, training programs, or financial literacy initiatives to support
their clients and promote development.
● Focus on Sustainability: Considering their environment focus area, DBP might offer
financing or programs that prioritize environmentally friendly projects or businesses.
● Corporate Social Responsibility Programs:
○ Education :Through the DBP Resources for Inclusive and Sustainable
Education (RISE), the Bank sends indigent but deserving high school
graduates to college. Scholarship assistance covers the whole range of the
 students’ requirements, including tuition, books, cost of living, and
allowances. The Bank also has existing partnerships with the Department of
Education covering equipment and facilities improvement, as well as
provision of school supplies and learning materials for students and learners
among others.
○ Environment: The DBP Forest Program is a non-credit program that aims to
stop denudation and restore the country’s forest cover through organized
collaboration with government and non-government organizations, state
universities and colleges, people’s organizations and other qualified forest
partners.
○ Outreach: DBP supports community development through its outreach
activities and programs. The Bank extends assistance to charitable institutions,
organizations, and LGUs for projects aimed to augment the provision of basic
social services to select vulnerable groups of society and for calamity and
disaster response.