The Development Bank of the Philippines (DBP) is a government owned bank that finances projects within the economy in order to keep it growing. As the name suggests, its goal is to help to develop the Philippines in a way that’s sustainable. We’re going to give you an inside look into the DBP and cover what exactly it does, as well as who it helps along the way.

Financing Small Businesses

One of the key roles of the DBP is to lend money to small businesses, such as single proprietorships and partnerships for a period of 3 – 5 years. This allows the business to get up and off the ground, but also encourages competition in the economy – by allowing small firms to enter a market. Competition forces larger companies to stay on their toes and keep their prices fair – otherwise customers will start buying from the smaller businesses.

In order to be considered a small business, you must have a market capitalisation of below 15 million Philippine Pesos (that’s around USD $340,000 at today’s rate).

Financing for Farmers

The DBP offers loans up to 90% of a project’s cost to farmers and fisherman to expand their farms through the Sustainable Agribusiness Financing Programme (SAFP). This money can be used to produce more food to help the Philippines become self-sufficient. Increasing the supply and availability of food through financing farming also allows for lower food prices, which aids the fight against hunger and poverty.

The DBP will make loans under SAFP for up to ten years.

Financing Transport and Logistics

As the Philippines consists of around 7100 islands, transport and infrastructure are pretty critical. The DBP uses its Connecting Rural Urban Intermodal Systems Efficiently (CRUISE) programme to address this – which finances the creation of different forms of infrastructure, such as aviation, roads and railways. The creation of roads, railways and airports creates work for people. This gives people more money to spend, which in turn, makes them spend more – greasing the wheels of the Philippines economy through injections of cash financed by the DBP.

Environmental Initiatives

As part of the lending process, the DBP encourages their clients to consider the environmental impacts of their business decision.

Efforts have been made to finance clean, green transport solutions and fuel supplies.

The DPB’s sustainable solid waste management programme aids the development of recycling, composting and residual waste treatment facilities.

The DBP also heavily finances projects that prevent air and water pollution.

This attitude is supportive of the DBP’s sustainable economic growth goal. While many countries are ignoring the idea of environmental sustainability, this is in favour of short-term economic gains. With the DBP’s financing towards environmental sustainability, the Philippines will remain clean and prosperous for many years to come. Processes like recycling allow a more efficient use of resources – being able to reuse things means that we won’t run out as quickly! This helps to cut the long-term costs of the economy through saving energy and the planet at the same time.

Social Services and Community Development Financing

The DBP supports education through financing school buildings, improving the quality of library resources and purchasing school supplies. This is important, as education is the key to improving the productivity and therefore growth of the economy.

The bank also provides loans to local governments and large groups to finance housing in the Philippines. This ensures that local bodies can supply enough shelter to house everyone in the community. This also provides jobs to builders, architects and tradesmen, keeping these professions in demand and passing money through the economy.

Healthcare is another priority of DBP financing, making loans to local governments for the purpose of upgrading medical facilities to benefit the community, particularly focusing on providing clean water, sanitation and adequate waste management. This ensures that the community remains healthy – which benefits the economy through a strong, healthy workforce.

Other Services

The DBP offers an investment banking service (as well as financial advisory and investment consultancy services). You can also make the DBP your regular bank – so can lend your money out the above causes and pay you a small premium for doing so, and you’ll still have access to your money like you usually would, as well as through ATM withdrawals and electronic cash cards. You can also access the option to buy government securities, like Treasury bonds and bills, if you’re looking for a relatively secure investment.

Overall, the DBP is an important institution when it comes to financing projects that benefit the community. These projects grease the wheels of the economy – ensuring that money changes hands on a regular basis, which means that everyone earns a fair wage.

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