LAND BANK ESSAY STUDY GUIDE

Company Profile:
The Land Bank of the Philippines is a government financial institution that strikes a balance in
fulfilling its social mandate of promoting countryside development while remaining financially
viable. This dual function makes LANDBANK unique. The profits derived from its commercial
banking operations are used to finance the Bank's developmental programs and initiatives.
Over the years, LANDBANK has successfully managed this tough balancing act as evidenced by
the continued expansion of its loan portfolio in favor of its priority sectors: the small farmers and
fishers, a good part of which are agrarian reform beneficiaries; micro and SMEs; agri- and aqua-
projects of local government units and government-owned and controlled corporations;
communications, transportation, housing, education, health care, environment-related projects,
tourism, and utilities.
LANDBANK is by far the largest formal credit institution in the rural areas. It also ranks among
the top five commercial banks in the country in terms of deposits, assets and loans.
Nationality:

100% Filipino Ownership

Founding Date:

Thursday, August 8, 1963

Ownership:

GOVERNMENT OF THE PHILIPPINES, 100% National Gov't P11.97 Billion Common Shares

Principal Activity:

Specialized Government Bank with universal banking license

Network:

403 Branches, 44 Lending Centers and 2,127 ATMs (as of August 2019)
History:

8 AUGUST 1963: REPUBLIC ACT 3844 (AGRICULTURAL LAND REFORM CODE)

o Created the Land Bank of the Philippines (LBP) to finance the acquisition and
distribution of agricultural estates for division and resale to small landholders as well as
the purchase of the landholding by the agricultural lessee;
o Authorized capitalization of 1.5 billion Php. Initial capital of 200 million Php;
o Members of the Board of Trustees:
Chairman - LBP President & CEO
One member elected by the holder of preferred shares
4 Members: including the Head of Land Authority (now Dept. of Agrarian
Reform)
o Tax exempt on all operations, holdings, equipment, property, income and earnings;
o Exempted from cash or stock dividend payments to the National Government;
o Agricultural Credit Administration (ACA) responsible for extending credit assistance to
farmers cooperatives and directly to small farmers

21 OCTOBER 1972: PRESIDENTIAL DECREE 27 (TENANT EMANCIPATION ACT)

o Emancipation of tenant-farmers of private agricultural lands devoted to rice and corn

under a system of share-crop or lease-tenancy, whether classified as landed estate or not;
o Value of land transferred to tenant-farmers at 2 1/2 times the average
o Harvest of 3 normal crop years immediately preceding the promulgation of PD 27;
o LBP to collect 15-year land amortizations from beneficiaries for the cost of the land plus
6% interest per annum

21 JULY 1973: PRESIDENTIAL DECREE 251 (REVITALIZING LANDBANK)

o Because LBP was deficient and inadequate both in capitalization and in organization
structure to meet the implementation requirements of agrarian reform, the Bank was
revitalized;
o Granted universal or expanded commercial banking powers to LBP and established LBP
as the universal bank with a social mission of spurring countryside development: to
cross-subsidize agrarian land transfer and loans to small farmers and fisherfolk;
o Expanded LBP's powers to include lending to agricultural, industrial, home-building or
home-financing projects and other productive enterprises: to ensure LBP's financial
stability and sustainability;
o Empowered LBP to grant loans to farmers cooperatives/associations to facilitate
production, marketing of crops and acquisition of essential commodities;
o LBP mandated to provide timely and adequate support in all phases involved in the
execution of agrarian reform;
o Increased authorized capitalization to 3 billion Php ;
o Increased the members of the Board of Directors to seven (7):
Chairman - Secretary of Finance
Vice-Chairman - LBP President
 Members (Ex-Officio)
Secretary of Agrarian Reform
Secretary of Labor -
Three Members - elected annually
Exempted from all national, provincial, municipal & city taxes and assessments

1977: REORGANIZATION

o LBP formed three major sectors - Agrarian, Banking and Operations to strengthen
operations and ensure long-term viability

8 JULY 1982: EXECUTIVE ORDER 816 (TRANSFER OF ACA TO LBP)

o To adopt an integrated approach in the provision of financial assistance to AR farmer-

beneficiaries a single institution is preferred;
o ACA was abolished and its functions (loans to small farmers) were transferred to LBP

22 JULY 1987: EXECUTIVE ORDER 229 (CARL)

o Created the Presidential Agrarian Reform Council (PARC) as the highest policy-making
and coordinating body of the Comprehensive Agrarian Reform Program (CARP) to
ensure timely and effective delivery of the necessary support services;
o Established the Agrarian Reform Fund (ARF) with an interim amount of 50 Php billion to
cover the financing requirements of CARP with appropriations coming from the proceeds
of the Asset Privatization Trust and the Presidential Commission on Good Government;
o FBs to pay for lands acquired and redistributed by the government in 30 equal annual
amortizations at 6% p.a. with the first payment due one year after resale (annual
amortization should not exceed 10% of the land's annual value of gross production);
o LBP to provide assistance to landowners through:
investment information and counselling assistance.
conversion and/or exchange of LBP Agrarian Reform bonds to/from government
stocks with government assets.
marketing of LBP Agrarian Reform bonds.

10 JUNE 1988: REPUBLIC ACT 6657 (CARL)

o Broadened the coverage of agrarian reform to include all public and private agricultural
lands including other lands of the public domain suitable for agriculture;
o Payment to landowners at 25% to 35% cash and the balance in 10-year Agrarian Reform
bonds with a yield of 91-day T-bills;
o Authorized LBP to collect from the FBs payment for lands awarded to them in 30 annual
amortizations at 6% per annum;
o Established LBP as the financial intermediary of the CARP.
14 JUNE 1990: EXECUTIVE ORDER 405 (CARP LAND VALUATION)
o Transferred the primary responsibility of determining land valuation and compensation
for all lands covered under CARP from the DAR to the LBP;
o Accelerated and streamlined certain procedures in land valuation and compensation;
o LBP created regional Land Valuation and Landowners Compensation Offices (LVOs) to
carry out land valuation and compensation.
3 FEBRUARY 1995: REPUBLIC ACT 7907 (AMENDED LBP CHARTER)
o Increased authorized capitalization to 9 billion Php ;
o Established LBP as an official government depository;
o Increased the members of the Board of Directors to nine (9) composed of:
o Chairman - Secretary of Finance
o Vice- Chairman - LBP President and CEO
o Members:
Secretary of Agrarian Reform.
Secretary of Labor.
Secretary of Agriculture.
2 Representatives of Agrarian Reform Beneficiaries.
2 Representatives from the Private Sector.
25 JULY 1995: EXECUTIVE ORDER 267 (CARL)
o National Government to issue Agrarian Reform (AR) bonds to be used by LBP for land
transfer payments;
o Segregation of the accounts of CARP-related transactions from the books of LBP;
o CARP accounts and AR bonds were previously part of LBP's books and adversely
affected LBP's financial position (leverage and capital adequacy ratios).
25 AUGUST 1998: INCREASE OF AUTHORIZED CAPITAL
o Authorized capitalization increased to 25 billion Php by the Department of Finance and
the President of the Philippines.

Major Roles of LANDBANK:

o An implementing agency of CARP involved in land evaluation, compensation to owners
of private agricultural lands,and collection of amortizations from CARP farmer-
beneficiaries.
o Provision of credit assistance to small farmers and fisherfolk and ARBs.
o An official depository of government funds.
o A government bank with a social mandate to spur countryside development.
Guiding Principles of LANDBANK:
o Catalyst of countryside development and poverty alleviation.
o Commitment towards the development of the cooperative system.
o Self-sustainability through cross-subsidy operations (commercial banking profits
supporting agrarian operations).
o Self-reliant government institution with no budgetary support.
o Commitment towards environmental protection.

Integrated Quality and Environmental Policy:

As a universal bank with a social mission, LANDBANK endeavors to deliver quality financial
and support services while promoting sustainable development.
Toward this end, LANDBANK will:
o Promote a culture of service excellence, professionalism, and social responsibility across
all ranks, from the Board, Management, officers and staff;
o Ensure that services are effective, at par with local and international standards, and
responsive to the changing needs of clients and stakeholders;
o Comply with applicable laws, regulations and covenants that it subscribes to and
incorporate best practices in all its operations; and
o Continuously improve its integrated management system.
We believe that giving premium to quality and environmental sustainability is one of the best
ways to show how much we value our relationship with our clients, partners and all our
stakeholders.
BOARD OF DIRECTORS:
Carlos G. Dominguez (Secretary - Department of Finance)
Cecilia C. Borromeo (President and CEO - Land Bank of the Philippines)
Silvestre H. Bello III (Secretary - Department of Labor and Employment)
William D. Dar (Acting Secretary - Department of Agriculture)
John R. Castriciones (Secretary - Department of Agrarian Reform)
Virgilio DV. Robes (Representative - Agrarian Reform Beneficiaries Sector)
Jaime L. Miralles (Representative - Agrarian Reform Beneficiaries Sector)
Jesus V. Hinlo, Jr. (Representative - Private Sector)
Nancy Irlanda Tanjuatco (Representative - Private Sector)
MANAGEMENT TEAM:
Cecilia C. Borromeo (President and CEO - Land Bank of the Philippines)
Liduvino S. Geron (Executive Vice President - Agricultural and Development Lending Sector)
Joselito P. Gutierrez (Executive Vice President - Branch Banking Sector)
Julio D. Climaco, Jr. (Executive Vice President - Corporate Services Sector)
Alan V. Bornas (Executive Vice President - Operations Sector)v
Carel D. Halog (Executive Vice President - Treasury and Investment Banking Sector)
VISION:
By 2023, LANDBANK shall be the leading universal bank that promotes inclusive growth,
especially in the unbanked and underserved areas, through the delivery of innovative financial
products and services powered by digital banking platforms.
MISSION:
To our Clients and Publics:
We provide accessible and best technology solutions to deliver timely and responsive financial
and support services to meet the needs of our clients, especially Small Farmers and Fishers
(SFFs), Micro, Small and Medium Enterprises (MSMEs), Countryside Financial Institutions
(CFIs), Local Government Units (LGUs) and government agencies, while promoting sustainable
development anchored on good governance.
To our Employees:
We are the employer of choice.
We develop and nurture talents who exemplify the highest standards of ethics, social
responsibility and service excellence.
We support diversity and cultivate a healthy work environment with equal opportunity for
professional growth and advancement.