Development Banks in the Philippines

. Main purpose of development banks
. Authorized banking activities
. Incorporation
. DBP - Is it a development bank?
. List of development banks in the Philippines

What’s the main purpose of development banks in the Philippines? It’s to help Filipino entrepreneurs and small and medium-sized businesses engaged in agriculture, industry, housing development and services.

Development banks are considered thrift banks. They’re under the Thrift Bank classification, together with savings and mortgage banks and savings and loan associations. They’re often referred to as “Private Development Banks.”

Development banks in the Philippines promote agriculture.

What are the authorized banking activities of Development Banks in the Philippines?

Just like other thrift banks, development banks can do the following:

  • Accept savings and time deposits
  • Open current or checking accounts
  • (only development banks with at least 20M pesos in net assets)
  • Act as correspondent for other financial institutions
  • Act as collection agent for government entities, like the SSS and BIR.
  • Act as depository of national agencies and municipal, city or provincial governments in the municipality, city or province where the development bank is located.
  • Rediscount paper with LandBank, Development Bank of the Philippines and other government-owned or controlled institutions.
  • Issue mortgage and chattel mortgage certificates only for the financing of equipment loans and real estate loans for production activities.
  • Purchase and convey real estate
  • Engage in quasi-banking and money market activities
  • Open domestic letters of credit
  • Provide credit to private and government employees through salary deduction programs.
  • Provide credit secured by jewelry, precious stones and articles of similar nature.
  • Offer other banking services with prior approval of the BSP Monetary Board.

How are Development Banks in the Philippines incorporated?

They must be organized as stock corporations. Before operating, they must obtain a certificate of authority from the BSP Monetary Board. They must also file incorporation documents and their BSP Certificate of Authority with the Security and Exchange Commission.

Is the Development Bank of the Philippines (DBP) classified as a development bank?

By category or classification, it’s not a thrift bank/development bank. The Development Bank of the Philippines (DBP) is a universal bank.

But by purpose and activities, the DBP is the premier development financing institution in the Philippines. It’s owned by the Philippine government.

Now, a trillion-peso bank, the DBP supports the national government in its priority development programs and financial inclusivity initiatives.

It helps finance infrastructure and logistics, community development, social services, environment, and small and medium enterprises. It extends credit to local government units, electric cooperatives and water districts.

List of Development Banks in the Philippines

As of October 19, 2022, there are 13 development banks in the Philippines. They’re 13 of 43 Philippine thrift banks. The following are thrift banks with “Development Bank” in their official names:

Development BankMain Office LocationNo. of Offices
11st Valley Bank, Inc. A Development BankCarmen, Cagayan de Oro City82
2Bangko Kabayan, Inc. (A Private Development Bank)Ibaan, Batangas24
3Bataan Development BankBalanga, Bataan7
4Dumaguete City Development Bank, Inc.Dumaguete City5
5First Consolidated Bank, Inc. (A Private Development Bank)Taloto, Tagbilaran City134
6Luzon Development BankCalamba City, Laguna39
7Makiling Development Bank CorporationCalamba City, Laguna4
8Northpoint Development Bank, Inc.San Pedro City, Laguna33
9Pampanga Development BankSan Fernando City, Pampanga4
10Penbank, Inc. (A Private Development Bank)Gen. Santos City, South Cotabato33
11Phil Star Development Bank, Inc.Kumintang Ibaba, Batangas City1
12Queen City Development Bank, Inc.Mapa St., Iloilo City17
13Wealth Development Bank CorporationCebu Business Park, Cebu City26

*Penbank, Inc. (A Private Development Bank) (formerly: Peninsula Rural Bank, Inc.)

*Queen City Development Bank, Inc. or Queenbank, A Thrift Bank

Republic Act No. 7906, an Act Providing for the Regulation of the Organization and Operations of Thrift Banks, and for other Purposes

Development Bank of the Philippines. Citizens Charter 2022, 1st Edition

Bangko Sentral ng Pilipinas. Directory of Banks and Non-Bank Financial Institutions

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