DBP reiterates support to coops, rural banks

Manila (28 December) — State-owned Development Bank of the Philippines (DBP) has widened its range of activities for cooperatives and rural banks in line with its commitment to ensure the continued growth of micro, small and medium enterprises (MSMEs) in the country.

“In the past, DBP’s partnership with cooperative banks had been strictly confined to our provision of wholesale funds. However, times have changed, drastically some would say, and this calls for a change in mindset,” DBP president and chief executive officer Reynaldo G. David said during the general assembly of the Cooperative Bank of Cavite recently.

“DBP strives to keep up with the changing times in order to ensure its strong partnership not just with cooperative banks, but more so with the mSME sector,” he added.

David cited DBP’s commitment of more than P21 million in contributions to the Credit Surety Fund (CSF) program which seeks to enhance the creditworthiness of small entrepreneurs and mitigate the credit risk of cooperatives and rural banks extending credit to the mSME sector.

He also said that DBP is prioritizing support to cooperatives and rural banks which are participating in the CSF program established by the Bangko Sentral ng Pilipinas.

He likewise said that DBP will help train or coach cooperatives and rural banks, particularly in terms capability building. “DBP’s assistance can also be expanded in terms of loan evaluation, loan processing, and loan approval, based on our credit requirements, evaluation standards, accounting, and risk management,” he said.

David also noted that DBP is open to giving cooperatives and rural banks cheaper wholesale funds as long as they are accredited under DBP’s microfinance program and qualified for rediscounting from the BSP. “Our borrowers have to charge a certain rate for the funds they have accessed from us. Definitely, these funds are way cheaper than any other money sourced from the outside.”

David also cited that DBP has set up the DBP Sustainable Enhancement and Development Program or DBP SPEED, an umbrella program specifically designed to provide mSMEs with reasonable loan terms at a shorter turnaround time.

He also expressed optimism that DBP’s partnership with the Cooperative Bank of Cavite will continue to flourish so both institutions can help more enterprising individuals in the province.

“Given the vital role that the province plays in the development of Southern Luzon, DBP is committed to strengthening our presence here in Cavite, and strengthening our partnership with the Cooperative Bank of Cavite is a good step towards achieving that goal,” he stressed. (DBP)