MANILA, Philippines - The Development Bank of the Philippines (DBP) plans to open 10 new branches this year in critical urban centers throughout the archipelago.
“We will apply for five branch licenses with the Bangko Sentral ng Pilipinas (BSP) immediately after the opening of the Gen. Luna, Brgy Tuktukan in Taguig City,” Edgardo F. Garcia, DBP chief operating officer, said.
BSP regulations require that a bank can apply for five new licenses only after it opens its previous license applications.
The Taguig City branch is part of an application made last year, which includes branches opened in Vigan City, Angeles City, Marikina City and Valenzuela City.
All branches opened last year and those that will be opened this year will be leased and not owned locations. DBP currently has 82 branches nationwide.
“It is too expensive for a government financial institution (GFI) to own large number of properties,” Garcia said, adding that it will likely be 10- to 15-year contracts with options for renewals and rental adjustments.
The targets will be all the key cities or first-class municipalities nationwide to be able to feed the needs of wholesale borrowers. It will likewise bring the state development bank closer to the huge development loans in infrastructure.
The key areas include Catanduanes City, Batangas City, San Jose del Monte City, Cabarroguis in Quirino, Toledo City, Santiago in Isabela, Sta. Cruz in Laguna, Valencia in Bukidnon, Iriga City, and Carcar in Cebu.
DBP extended development loans worth P91.6 billion in 2009. Infrastructure and logistics-related infrastructure projects worth P17.5 billion were channeled to the Cordillera Autonomous Region, Southern Mindanao, Southern Mindanao, Central Luzon, Central Visayas, Ilocos and Southern Tagalog.
Programs focused on environmental initiatives involving new and renewable energy, solid waste management, cleaner technology, and pollution control and abatement accounted for P6.1 billion of its development loans.
Some P11.8 billion in funds were released for micro, small and medium enterprises projects located in Ilocos, Southern Tagalog, Central Visayas and Central Luzon. Another P9.5 billion were allocated for social services projects such as hospitals and schools in Bicol, Southern and Northern Mindanao, Central Visayas, Central Luzon, Ilocos and Southern Tagalog.
Meanwhile, Garcia also denied rumors that DBP planned to acquire the Philippine Postal Savings Bank (Postal Bank), a subsidiary of the Philippine Postal Corp.
Instead, the state financial institution is eyeing the country’s postal network for its remittance business. The postal network is not only spread out nationwide but has international linkages, thus facilitating international and domestic money transfers.
Both government entities have been developing separate international money transfer or remittance network, with the principal focused towards overseas Filipinos.
“There is more value in developing the postal network for domestic and international money transfers,” Garcia added.