DBP calls on rural banks to improve financial inclusion

MANILA, Philippines — State-run Development Bank of the Philippines (DBP) has called on rural banks to work together with development financing institutions (DFI) to implement programs that will expand services to unbanked sectors and improve financial inclusion in the country.

In a statement, DBP president and chief executive officer Emmanuel Herbosa said rural banks are “natural partners” of DFIs who seek to broaden their presence, especially in municipalities experiencing economic resurgence.

“Rural banks are the cutting edge as they know the needs of the communities that they serve. Together with development financing institutions such as the DBP, they can catalyze the rural economy and make it robust,” Herbosa said.

According Herbosa, rural banks play a pivotal role in promoting inclusive development, especially in the countryside by providing credit to sectors such as farmers, fisherfolks and small businesses.

DBP is the eighth largest bank in the country with assets totaling P669.75 billion last year.  It provides loans to strategic sectors, such as infrastructure and logistics, small and medium enterprises, social services and community development and environment.

Currently, DBP has a network of 137 branches, including 10 branch lite units that cater mostly to underserved and unbanked communities in the country.

The bank also offers digital banking services to rural banks that cover disbursement and collection services, and cash management solutions through the DBP Digital Banking Portal or DBP2.

Aside from expanding its branch network and increasing the number of its automated teller machines, the bank is also implementing reforms that will improve operations, automate processes, and upgrade credit risk capabilities to enhance service to underserved communities.

“These initiatives would allow DBP to deliver meaningfully to our proven credits while giving financial advisory to upgrade marginal credits,” Herbosa said.

In 2018, bank’s total loan portfolio stood at P328.93 billion, up  12 percent year on year.

Its deposit base went up by 15 percent to P474.44 billion, pushing the bank’s net worth or capital base to P51.16 billion as of the end of 2018.

With the bank’s aggressive lending and deposit generation activities, the DBP was able to book a total net income of P5.72 billion last year, 4.2 percent higher than the previous year.