MANILA – The House of Representatives on Tuesday approved on third and final reading a measure seeking to provide a new charter for the Development Bank of the Philippines.

It aims to strengthen the powers and the functions of DBP, as the premier government developmental financial institution and partner in national development.

With 199 voting in the affirmative, three in the negative and zero abstentions, the plenary approved House Bill No. 11230, which is a consolidation of six bills.

Once the bill is enacted into law, Executive Order No. 81 or the 1986 Revised Charter of the DBP will be repealed.

Among the key provisions in the law include mandating the bank to support government programs promoting growth and increased productivity in sectors like infrastructure, micro, small and medium enterprises promotion and high impact programs in education, healthcare, housing, environmental protection and other social services.

The DBP will also be mandated to implement government policies on priority area financing, enhanced competition in financial markets and promotion of financial sector development.

"The Bank shall serve as a national development policy arm to support and implement government policies on directing financial flows to priority areas, enhancing competition in financial markets, and the promoting financial sector development leading to capital allocation improvements, thereby contributing to macroeconomic stability," the bill read.

The bank shall likewise adopt policies on digitalization "to improve operational efficiency and governance while promoting financial inclusion."

The authorized capital stock of the DBP will be increased from the current P50 billion to P300 billion divided in to three billion common shares or P100 per share.

National government shall own at least 70 percent of DBP's total outstanding capital stock.

Of the total, P32 billion or 10.67 percent of the total will be subscribed and fully paid by the national government.

Government owned and controlled corporations (GOCCs) and government financial institutions are authorized to invest in shares of stocks of DBP.

Under the bill, DBP may allocate its unrestricted earnings to increase the paid-up capital stock of national government.

Last September, the Senate approved on third and final reading Senate Bill No. 2804 or the New DBP Act.

Senator Mark Villar, the author and sponsor of the Senate bill, earlier said "there is an imminent need to amend the DBP's charter."

Finance Secretary Ralph Recto has been pushing for the bill to amend the DBP's charter to increase the bank's capitalization.