Land Bank of the Philippines: Company Profile

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  • Topic: Bank, Poverty, Credit union
  • Pages : 3 (749 words )
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  • Published : February 6, 2012
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Vision
A countryside where there is democratic control over resources and decision-making, optimal productivity, and equitable distribution of wealth. Mission
To serve as a catalyst for countryside development through innovative approaches in building stronger and more cohesive cooperative organizations with viable and sustainable business enterprises.

Brief History
Land Bank of the Philippines (LBP) is a financial institution wholly owned by the Philippine National Government. It was created under the Agrarian Reform Law enacted by Congress in 1963. Later, LBP became the first universal bank by charter with expanded commercial banking powers to sustain its social mission of spurring countryside development. The bank is directly under the administrative supervision of the Department of Finance (DOF). As a bank, it is under the regulatory supervision of BSP. It is audited by the Commission on Audit. Country Program

LBP’s major mandate is to provide the financial support needed for the acquisition of lands in favor of tenant farmers under the government’s land reform program. Its current scope of operations includes program-based lending to agri-based enterprises through rural financial institutions principally rural banks/cooperative rural banks and cooperatives. LBP is also engaged in regular commercial banking. The mandate of LBP to undertake microfinance operations is spelled out in two laws: RA 8425 known as the Social Reform and Poverty Alleviation Act, and RA 9178 known as the Barangay Microenterprise and Business Enterprises (BMBE) Act passed by Congress in the year 2002. Both laws mandate LBP and other government financial institutions (GFIs), to set up a special credit window for microenterprises and to promote microfinance programs for the poor. According to the JBIC Study, LBP’s current involvement in microfinance is the guarantee that it has provided to the loans obtained from ADB-IFAD Rural Microenterprise Finance Project (RMFP)...
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