Institutional Capacity Building for DFIs: The DBP Experience (First presentation) Isidro A. Sobrecarey Vice President and Chief of Staff Office of the Chairman Development Bank of the Philippines ADFIAP-CEO Forum VIII Dec. 5-7, 2011, Thimphu, Bhutan

VISION: By 2016, a globally-recognized development financial institution, serving as a catalyst for a progressive and poverty-free Philippines MISSION: We will work for raising the level of competitiveness of the economy for sustainable growth. We will support infrastructure development, responsible entrepreneurship, efficient social services and protection of the environment We will promote and maintain the highest standards of service and corporate governance. MANAGEMENT PHILOSOPHY: Participative Management Good Governance Transparency People Development OUR CORE VALUES: INTEGRITYEXCELLENCETEAMWORK SERVICE TO OTHERS LOVE FOR THE FILIPINO

Hierarchy Strategic QuestionsPerspective Who are our stakeholders and how can they benefit from our services? Social Impact How do we improve our fund sourcing and management? Finance How do we intensify funding for priority areas? What are we doing to be globally recognized? Constituency What corporate governance practices should we implement to achieve breakthrough results, comply with internal and external regulatory requirements and strengthen bank operations? Internal Process How can we acquire, develop and harness the skills and talent of our people to attain our vision? Do we have sufficient organizational development initiatives to pursue our mandate and grow? Are we providing the direction to our people to think developmental? Organization

Strategic QuestionsAnswers (Strategic Objectives) SOCIAL IMPACT: Who are our stakeholders and how can they benefit from our services? To provide wider access to social services – health, education, livelihood, housing. -- to our stakeholders, i.e., Filipinos, Government, Clients, Employees FINANCE: How do we improve our fund sourcing and management? To improve the financial terms of ODA funding and diversify sources of funds. To intensify deposit generation capabilities. To improve the quality and balance of investment portfolio. CONSTITUENCY: How do we intensify funding for priority areas? What are we doing to be globally recognized? To support government priority programs, i.e., infrastructure, environment and social services. To strengthen the balance sheet and improve our credit ratings. To be recognized by overseas Filipinos and foreign investors as a preferred partner INTERNAL PROCESS: What corporate governance practices should we implement to achieve breakthrough results, comply with internal and external regulatory requirements and strengthen bank operations? To carry out the mandate of regulators (BSP, COA and SEC) in the areas of audit, risk management, and compliance. To exit from the PCA status by complying with internal and external regulatory policies. To streamline and update existing credit and other operating policies and processes To establish and utilize information and communications systems and technology (MIS, ATM, website, etc.) as a management tool and enabler ORGANIZATION: How can we acquire, develop and harness the skills and talent of our people to attain our vision? Do we have sufficient organizational development initiatives to pursue our mandate and grow? Are we providing the direction to our people to think developmental? To attract and retain the best and the brightest To formulate and institutionalize a succession plan and talent management To improve training programs for branch operations To provide and implement a structure for a learning and peak-performing organization. To update and align the performance management system toward a balanced portfolio and efficient operations

Development Has a New Name: Good Governance Persistence, Patience, and Perseverance: the “Three Ps” in instituting a Governance Culture. “Culture” has to be pitched to the mind: it is what is in the minds of people that shapes what they say and what they actually do. But it also has to be pitched to the heart: people have to be won over totally, and this includes winning their attitudes, sentiments, and sense of belonging---tinged with pride and loyalty----to the institution where they work. Much of the program to embed a Governance Culture at all levels and in all facets of an institution can---and should be---incorporated into the program of activities. Dr. Jesus P. Estanislao, Former DBP Chairman/CEO, Director General- National Economic and Development Authority and Secretary of Economic Planning, and Philippine Finance Secretary Currently, Chairman - Institute for Solidarity in Asia