DBP says it follows 'stringent' loan policies

ABS-CBN News

Posted at May 23 2017 04:06 PM

MANILA - State-run Development Bank of the Philippines on Tuesday said it follows "stringent credit policies" to ensure that all transactions are aboveboard after House Speaker Pantaleon Alvarez flagged alleged irregularities.

The DBP did not grant "behest" loans, said Marianne Garcia, senior assistant vice president of the bank's corporate affairs department.

The bank also has safeguards to manage credit concentration risk "that may be brought about by exposure to single name/group borrowers and industry sectors, among others," Garcia said.

Last week, Alvarez asked DBP to account for beneficiaries of a P5-billion loan under the previous administration in 2015, which he said appeared to be given undue privileges to the detriment of the bank.