LGUs, public urged to deposit in government banks

Local

LOCAL government units (LGUs) and private individuals are advised to take advantage of more accessible and convenient banking services.

This comes as the Development Bank of the Philippines (DBP) formally inaugurated its first branch-lite unit (BLU) in Cebu province on Friday, April 10.

The initiative is part of DBP’s effort to bring basic financial services closer to growing local economies and underserved communities in southern Cebu.

The facility, located in Naga City, is designed to offer simplified banking operations.

In an interview, AVP Kristine Michelle Ancog, head of the Naga Branch-Lite Unit, explained that the BLU model is designed for efficiency and faster expansion in high-growth areas.

“In the main branch, it's complete. We have the cash division, loans, and accounting. Here, it's just receiving. You can receive deposits and withdrawals, but the cashier and all processing are part of the main branch,” Ancog said.

She said the initiative strengthens financial access for residents and LGUs by placing banking services closer to communities.

“The very significance is that we are closer to the constituents, especially here in Naga,” she added.

Ancog said Naga was chosen due to its strong economic activity and growing deposit base, describing it as a key area for development banking support in southern Cebu.

LGUs, private individuals urged to deposit

Ancog emphasized that LGUs are encouraged to deposit in government financial institutions as part of public sector financial management practices, noting that DBP has long served local governments in the province.

“LGUs are encouraged to deposit in government banks also,” she said, adding that the Naga LGU has been a DBP client since 1999.

She also highlighted security and deposit protection, noting that funds placed in banks are insured under the Philippine Deposit Insurance Corporation (PDIC) up to P1 million per depositor.

Beyond LGUs, Ancog said private individuals are also encouraged to open accounts with DBP, as part of its financial inclusion drive.

She said the bank offers lower initial deposit requirements compared to commercial institutions, making banking more accessible to low-income earners and young savers.

For savings accounts, opening deposits may start as low as P500, while special accounts for young earners may require as little as P100.

Ancog said this is intended to encourage saving habits among Filipinos, especially those who previously kept cash at home.

She also encouraged residents to move away from informal saving practices such as storing money in piggy banks, stressing that bank deposits provide safety and potential growth through interest.

“When you deposit your money, it will grow. There will be interest. But if you just keep it at home, it won’t grow,” she said.

She added that keeping cash at home carries risks such as damage, loss, and depreciation.

"Masunog pa, anayon pa... That is why mas better gyud gihapon you trust the bank," she added.

Inclusive banking pushed

In a message during the inauguration, DBP Chairman Philip G. Lo said the opening of the Naga Branch-Lite Unit reflects the bank’s commitment to expand customer-centered and inclusive financial services across the country.

Lo said the initiative supports DBP’s mission of ensuring convenient access to financial solutions while contributing to local economic growth.

“As we formally open our doors to our valued clients and potential customers, may I also express our firm resolve that DBP would tangibly contribute to the economic rise of Naga,” he said.

He added that DBP continues to strengthen its support for projects that enhance competitiveness and improve public welfare, particularly in fast-growing cities like Naga.

Lo also highlighted the launch of DBP’s digital platform, DBP ONE, which allows clients to access banking services through secure and convenient online transactions.

He also encouraged stronger partnerships with local government units, noting that DBP is ready to finance priority projects in infrastructure, social services, Micro-, small, and medium-sized enterprises , and environmental programs.

The inauguration was attended by Cebu Governor Pamela S. Baricuatro, Naga City Mayor Valdemar M. Chiong, and representatives from LGUs in first district of Cebu.

Also present were DBP President Mike O. de Jesus, members of the DBP Board, senior vice president Carolyn Olfindo, DBP officers and employees, and other local government representatives.(MyTVCebu)