EXECUTIVE ORDER NO. 81 December 3, 1986
Repealed Sec. 11 and Amended Sec. 7,8,10,12 & 13 by RA 8523PROVIDING FOR THE 1986 REVISED CHARTER OF THE DEVELOPMENT BANK OF THE PHILIPPINES
WHEREAS, it is the policy of the State that the national interest in both the maintenance of economic stability and the promotion of economic development is best served by a system of financial intermediation that places primary reliance on the private sector, on the maintenance of conditions of competition, and on the market mechanism for its effective operations.
WHEREAS, within the context of the general policy there nevertheless exists a clear role for direct government participation in the banking system through a government development bank, particularly in servicing the medium and long term requirements of agriculture, and small and medium scale industry, export development, and the government sector;
WHEREAS, in pursuit of this national policy there is need to restructure the government financial institutions, particularly the Development Bank of the Philippines, to achieve a more efficient and effective...
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Executive Orders
Providing For The 1986 Revised Charter Of The Development Bank Of The Philippines
Executive Order No. 81
Summary of Executive Order No. 81 - 1986 Revised Charter of the Development Bank of the Philippines:
Purpose and Powers:
- The primary purpose of the Development Bank of the Philippines (DBP) is to provide banking services, principally to service the medium and long-term needs of agricultural and industrial enterprises, particularly small and medium-scale enterprises in the countryside. (Sec. 2)
- DBP has the power to accept deposits, grant loans, manage trust funds, act as an official government depository, acquire and dispose of securities, enter into contracts of guaranty, and exercise general corporate powers. (Sec. 3)
Loans and Investments:
- Loans and investments of DBP are subject to the same limits and ceilings applicable to thrift banks under existing laws and regulations. (Sec. 4)
- Existing loans and investments exceeding prescribed limits shall be reduced within five years, extendable for another five years by the President. (Sec. 4)
Issuance of Bonds:
- DBP may issue bonds, debentures, and securities within and outside the Philippines, subject to compliance with applicable laws and regulations. (Sec. 5)
- The bonds shall be secured by DBP's assets and may be long-term, medium, or short-term, with fixed or floating interest rates. (Sec. 5)
Assistance to Private Banks:
- DBP may assist private development banks, other thrift banks, and rural banks through credit accommodations, conduit lending, rediscounting operations, and technical assistance. (Sec. 6)
- DBP may make equity investments in such banks, subject to certain conditions and ceilings. (Sec. 6)
Capital Stock and Board of Directors:
- The authorized capital stock of DBP is Five Billion Pesos, divided into 50 million common shares with a par value of P100 per share, available for subscription by the National Government. (Sec. 7)
- The affairs of DBP shall be directed by a Board of Directors consisting of nine members appointed by the President of the Philippines, with at least four members from the private sector. (Sec. 8)
- The Board has various powers and duties, including formulating policies, approving loans, adopting an annual budget, and appointing senior officers. (Sec. 9)
Chairman and Officers:
- The Chairman shall be the Chief Executive Officer of DBP and shall have the direction and control of its business affairs. (Sec. 10)
- The Vice Chairman shall be the Chief Operating Officer and shall assume duties delegated by the Chairman. (Sec. 11)
- DBP shall have its own Legal Department, and may also avail legal services from government legal offices. (Sec. 12)
- The Board shall provide for the organization and staff of officers and employees, and fix their remunerations. (Sec. 13)
Prohibitions and Conflict of Interest:
- Directors, officers, and employees are prohibited from borrowing from DBP, subject to exceptions for fringe benefits. (Sec. 19)
- The Board shall issue rules and regulations for determining and resolving conflict of interest questions. (Sec. 20)
Penal Provisions:
- Penal provisions are established for violations of the Charter, including exacting fees for obtaining loans, revealing confidential information, and willful violations by officers or employees. (Sec. 23-27)
Transitory Provisions:
- Upon effectivity, DBP shall undertake steps to establish its financial condition, determine net asset values, and transfer necessary assets and liabilities to the National Government for rehabilitation. (Sec. 29-31)
- A reorganization of DBP and reduction in force are authorized, with separation benefits for those retiring or separated. (Sec. 32-34)
- The banking operations under the 1986 Revised Charter shall commence on January 2, 1987, or a subsequent date determined by the President. (Sec. 35)
Purpose and Powers:
- The primary purpose of the Development Bank of the Philippines (DBP) is to provide banking services, principally to service the medium and long-term needs of agricultural and industrial enterprises, particularly small and medium-scale enterprises in the countryside. (Sec. 2)
- DBP has the power to accept deposits, grant loans, manage trust funds, act as an official government depository, acquire and dispose of securities, enter into contracts of guaranty, and exercise general corporate powers. (Sec. 3)
Loans and Investments:
- Loans and investments of DBP are subject to the same limits and ceilings applicable to thrift banks under existing laws and regulations. (Sec. 4)
- Existing loans and investments exceeding prescribed limits shall be reduced within five years, extendable for another five years by the President. (Sec. 4)
Issuance of Bonds:
- DBP may issue bonds, debentures, and securities within and outside the Philippines, subject to compliance with applicable laws and regulations. (Sec. 5)
- The bonds shall be secured by DBP's assets and may be long-term, medium, or short-term, with fixed or floating interest rates. (Sec. 5)
Assistance to Private Banks:
- DBP may assist private development banks, other thrift banks, and rural banks through credit accommodations, conduit lending, rediscounting operations, and technical assistance. (Sec. 6)
- DBP may make equity investments in such banks, subject to certain conditions and ceilings. (Sec. 6)
Capital Stock and Board of Directors:
- The authorized capital stock of DBP is Five Billion Pesos, divided into 50 million common shares with a par value of P100 per share, available for subscription by the National Government. (Sec. 7)
- The affairs of DBP shall be directed by a Board of Directors consisting of nine members appointed by the President of the Philippines, with at least four members from the private sector. (Sec. 8)
- The Board has various powers and duties, including formulating policies, approving loans, adopting an annual budget, and appointing senior officers. (Sec. 9)
Chairman and Officers:
- The Chairman shall be the Chief Executive Officer of DBP and shall have the direction and control of its business affairs. (Sec. 10)
- The Vice Chairman shall be the Chief Operating Officer and shall assume duties delegated by the Chairman. (Sec. 11)
- DBP shall have its own Legal Department, and may also avail legal services from government legal offices. (Sec. 12)
- The Board shall provide for the organization and staff of officers and employees, and fix their remunerations. (Sec. 13)
Prohibitions and Conflict of Interest:
- Directors, officers, and employees are prohibited from borrowing from DBP, subject to exceptions for fringe benefits. (Sec. 19)
- The Board shall issue rules and regulations for determining and resolving conflict of interest questions. (Sec. 20)
Penal Provisions:
- Penal provisions are established for violations of the Charter, including exacting fees for obtaining loans, revealing confidential information, and willful violations by officers or employees. (Sec. 23-27)
Transitory Provisions:
- Upon effectivity, DBP shall undertake steps to establish its financial condition, determine net asset values, and transfer necessary assets and liabilities to the National Government for rehabilitation. (Sec. 29-31)
- A reorganization of DBP and reduction in force are authorized, with separation benefits for those retiring or separated. (Sec. 32-34)
- The banking operations under the 1986 Revised Charter shall commence on January 2, 1987, or a subsequent date determined by the President. (Sec. 35)