Both state-controlled Land Bank of the Philippines (Landbank) and Development Bank of the Philippines (DBP) expressed confidence that its combined P75-billion investments in Maharlika Investment Corp (MIC) is safe and profitable in the long term.
DBP President and CEO Michael O. de Jesus says in the next four to five years, the country "should be reaping the gains" from both the financial and developmental side of the MIC.
Landbank President and CEO Lynette V. Ortiz is convinced that the “law creating the MIF (Maharlika Investment Fund) has enough safeguards to protect" its invested funds.
Landbank is bigger than DBP with total assets of P3.11 trillion. DBP has total assets of P975.835 billion.
P75-B Maharlika contribution safe -- DBP, Landbank
Sep 17, 2023 03:41 PM
At a glance
Government-owned Land Bank of the Philippines (Landbank) and Development Bank of the Philippines (DBP), which have remitted the required P75 billion capital for the administration’s much-touted Maharlika Investment Corp. (MIC), are hoping the funding will be put to good use, and with ironclad safety nets to protect their investments.
DBP on Saturday, Sept. 16, said it has deposited its share of P25 billion to the Bureau of the Treasury (BTr) last Thursday.
DBP’s announcement followed that of Landbank’s own statement Friday, Sept. 15, that it also remitted its much larger contribution of P50 billion to the National Government (NG).
According to DBP President and CEO Michael O. de Jesus, he expects the MIC and the Maharlika Investment Fund (MIF) to “be properly and effectively managed through a strong leadership and corporate governance as envisioned by the administration.”
The bank quoted de Jesus as saying the corporation “should be able to optimize the use of the government’s financial assets to generate substantial returns and support infrastructure projects in order to promote efficient management of wealth and assets.”
“DBP foresees that in the next four to five years, the country should be reaping the gains from both on the financial and developmental fronts as a result of the trailblazing activities of the MIC,” he added.
Both banks deposited the required MIC contributions ahead of the Sept. 17 deadline set by Republic Act No.11954, or the Maharlika Investment Fund Act of 2022.
De Jesus said they are “enthused” about making their “full contribution to the MIF.”
He said the state-owned bank supports the administration in “ensuring the immediate establishment of the Maharlika Investment Corporation which would shepherd the initiatives that would reshape and redefine the country’s economic landscape.”
Based on the MIF law which was approved July 18 this year, the NG, DBP and Landbank are mandated to provide the initial capital of the MIC.
The NG will put in P50 billion from the Bangko Sentral ng Pilipinas (BSP) dividends.
On Friday, Landbank President and CEO Lynette V. Ortiz is convinced that the “law creating the MIF has enough safeguards to protect the Bank’s invested funds,” a statement from the bank quoted her.
“The MIF law has put in place adequate safety nets to ensure full disclosure and transparency in the management of the Fund, as well as the integrity and professionalism of the management team that will be entrusted to lead the Maharlika Investment Corporation,” she said.
In terms of asset size, Landbank is bigger than DBP with total assets of P3.11 trillion. It is the country's second largest lender.
DBP, on the other and, has total assets of P975.835 billion, the eighth biggest bank out of 45 universal and commercial banks in the Philippines.