PRESIDENT Ferdinand R. Marcos Jr., has approved the slashing of the state-run Development Bank of the Philippines (DBP) mandated percentage of its 2022 earnings of their dividend rate to 0%.

According to the Presidential Communications Office (PCO), the said moves was aimed to strengthen the bank’s capital position, as well as comply with the central bank’s regulations.

Executive Secretary Lucas Bersamin, issued Executive Order No. 48, containing the new policy.

Under the EO, it adjusted the percentage of net earnings for Calendar Year 2022 from 50% to 0%.

It also said that under Republic Act (RA) No. 7656, the government-owned or -controlled corporations (GOCCs) are beng asked to declare and remit 50% of their annual net earnings as cash, stock, or property dividends to the national government.

The same law states that the President, upon the recommendation of the Secretary of Finance, may adjust the percentage of annual net earnings to be declared by a GOCC, “in the interest of national economy and general welfare.”

In October, the president adjusted Land Bank of the Philippines’ dividend rate to 0% from 50%.