777club DBP seeks extension of regulatory relief
State-run Development Bank of the Philippines (DBP) will ask the Bangko Sentral ng Pilipinas (BSP) for an extension of regulatory relief following its hefty contribution to the Maharlika Investment Fund (MIF)777club, even as it expects to remain compliant with capital requirements.
Meanwhile, Land Bank of the Philippines (LandBank), another state-owned lender that made a big investment in the MIC, said there’s no need for it to make such a move.
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Article continues after this advertisementSpeaking to reporters during the 2025 annual reception for the banking community, DBP president and CEO Michael de Jesus said the bank would ask for a renewal of its regulatory relief from capital requirements to seek “comfort.”
FEATURED STORIES BUSINESS BIZ BUZZ: Antonios go to Washington BUSINESS MVP Group inks 25-year Camp John Hay lease, BCDA’s first BUSINESS LRT 2 extension gathers steam with P2-B funding“This year, you will see, we will meet all the minimum capital ratios based on the results of 2024,” De Jesus said.
“Even though I said we will meet all the capital [requirement] ratios, we would still seek [an extension] for comfort,” he added.
Article continues after this advertisementFor her part, Lynette Ortiz, president and CEO of LandBank, said her bank could wean off the regulatory relief once it ends, as the bank stays financially strong despite injecting billions of pesos to the MIF.
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Article continues after this advertisement“We have had discussion before that the regulatory relief was actually good for two or three years and that was really viewed—from our perspective—as a buffer,” Ortiz said in a separate interview.
Article continues after this advertisement“But certainly if you look at our financials, you look at our numbers, we have no need for it,” she added.
Both Landbank and DBP hold significant shares in Maharlika Investment Corp. (MIC), the upstart company managing the MIF, the country’s nascent sovereign wealth fund.
Article continues after this advertisementRecall that Landbank and DBP remitted to the Bureau of Treasury their combined P75-billion contribution, representing 60 percent of the P125-billion initial capitalization of MIC.
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