History
DBP's history can be traced back during the time of the Commonwealth of the Philippines. In 1935, the National Loan and Investment Board (NLIB) was created to coordinate and manage the various government trust funds such as the Postal Savings Fund and the Teacher's Retirement Fund. In 1939, the NLIB was abolished and its functions were transferred to a new body, the Agricultural and Industrial Bank (AIB).
AIB continued operations until the outbreak of World War II. After the war, in 1947, the AIB was abolished and the Rehabilitation Finance Corporation was formed in its place by Republic Act No. 85, absorbing the powers and functions of the AIB. The RFC provided credit facilities for the development of agriculture, commerce and industry and the reconstruction of properties damaged by the war. In 1958, the RFC was reorganized into the modern-day DBP, reflecting that since reconstruction was largely finished, the RFC can venture into other fields.
With an initial capital of 500 million pesos, DBP set to work on expanding its facilities and operations to accelerate efforts on national economic development. It established a nationwide branch network and tapped local and foreign resources to complement its capital. It also borrowed money directly from international finance institutions. While this strategy helped accelerate capital formation and employment, especially in the countryside, the strategy eventually proved to be disastrous. By the time of Ferdinand Marcos, DBP's viability was undermined by an increasing number of non-performing accounts following a 1970s recession.
After the ouster of Marcos and the election of Corazon Aquino as president, she issued Executive Order No. 81, which reorganized the bank and gave it a new charter. All non-performing assets and liabilities were subsequently transferred to the government on June 30, 1986 and led to DBP forming a program to strengthen its institutions, such as a thorough revision of the credit process and a training program for the intensive implementation of new lending thrusts. Likewise, DBP reopened its lending windows for housing, agriculture and SMEs.
In 1995, DBP became a universal bank when it was granted its universal banking license, and three years later, had its charter revised. Under the revised charter, DBP's authorized capital would increase from five billion pesos to 35 billion pesos and led to the creation of the posts of President and CEO.
Read more about this topic: Development Bank Of The Philippines
Famous quotes containing the word history:
“History is the present. That’s why every generation writes it anew. But what most people think of as history is its end product, myth.”
—E.L. (Edgar Lawrence)
“It’s not the sentiments of men which make history but their actions.”
—Norman Mailer (b. 1923)
“A man will not need to study history to find out what is best for his own culture.”
—Henry David Thoreau (1817–1862)