LandBank Of The Philippines Continues To Serve The Needs Of The Philippine Fishermen And Farmers

LandBank of the Philippines is a different kind of bank; this bank has a special focus that sets it apart from the other banks in the country.

This bank that is owned by the government of the Philippines is a bank given with a special focus- a focus on serving the needs of the country's farmers and fishermen.

The bank which is also known by the name of LandBank is the official depository bank of the Republic of the Philippines. The bank is considered as the fourth largest bank in the country right now and it maintains 343 branches located all over the country and this count was as of October 2008. This is also considered as the largest government-owned bank and considered as one of the biggest government-owned and controlled corporations in the country. The bank is known to maintain an extensive network of rural banks in the country and this is another thing that separates the bank from the other banks in the market. And another distinction is that this bank serves primarily the needs of the rural sector clients in areas where banking services are limited to rural banks or non-existent.

The bank is guided by four major roles:

. The LandBank is considered as the implementing agency of the CARP or the Comprehensive Agrarian Reform Program and is involved in land valuations, compensation to owners of private agricultural lands and the collection of amortizations from CARP-farmer beneficiaries.

. The provisions of credit assistance to the country's small farmers and fishermen and the ARB

. To act as the official depository of government funds;

. Government bank that can help spur countryside development.

Tracing the roots of LandBank

The bank was officially established on August 8, 1963 and the establishment of the bank was part of the Agricultural Land Reform Code. This is Republic Act No. 3844 designed to help in land reform and help the government in the purchase of agricultural estates that will be subdivided and sold to small landowners and the bank was also designed to buy land by the agricultural lessee. By 1965, the by-laws of the bank was approved and this was the time too when the first board of trustees of the board was formed and the Secretary of Finance as the chairman of the board.

By 1972, the bank was tasked to collect the 15-year land amortizations and this was defined by the Presidential Decree No. 27 which was signed by then President Ferdinand Marcos. By 1973, the bank suffered some financial difficulties as it lacked the resources and the capital needed for it's to implement the programs which it is required to implement. By July of the same year, then President Marcos acted to save the bank and signed the Presidential Decree No. 251. This decree granted the bank a universal banking license and was given a social mission to help spur development in the countryside. The decree became exempted from national, provincial, city and municipal taxes and assessments.

The bank saw reorganization on 1977 and the bank was divided into three sectors. The new sectors of the bank include the Agrarian, Banking and the Operations. The year 1982 is an important year in the history of the bank as this was the time when it absorbed the Agricultural Credit Administration. This was the time when UnionBank was established and LandBank had a 40-percent share in the new commercial bank. By 1988, the bank was made as the financial arm for the CARP. The bank's charter was amended once again on February 23, 1995 and the capital of the bank was increased to nine billion pesos and this was the time when it was made as the official government depository. By 1998, the bank's capital was raised to 25 billion pesos.

The bank is divided into seven subsidiaries and affiliates:

. LBP Countryside Development Foundation

. LBP Insurance Brokerage

. LBP Leasing Corporation

. LBP Realty Development Corporation

. Masaganang Sakahan

. National Livelihood Support Fund

. People's Credit and Finance Corporation

The LandBank of the Philippines is 100 percent owned by the government of the Philippines and directly competes with MetroBank, Banco de Oro and Philippine National Bank.