The Department of Finance (DOF) announced recently that the Land Bank of the Philippines, the second-largest bank in the country in terms of assets, will continue to uphold its social mandate of quickening inclusive growth in rural areas.
In a statement, finance chief Benjamin E. Diokno said, “Landbank has been at the forefront of banking the unbanked. Through our partnership in the rollout of the Philippine Identification System (PIS), more than 8 million formerly unbanked Filipinos now have their own bank accounts.”
“Here’s my marching order to you — do your utmost to make LANDBANK more focused and responsive than ever towards creating a meaningful and deeper impact in the bank’s bigger role in nation-building,” the statement read.
Diokno adds that he expects the bank to continue to be at the forefront of efforts in transforming into reality the government’s goals of achieving an inclusive financial system and long-term economic growth that benefits all Filipinos. He also noted how the lender’s agri-loan portfolio, which has since grown by 15 percent compared to the same period last year, is still the biggest among all banks in the country.
To date, the state-owned Land Bank of the Philippines has remained the largest lender to the agriculture sector with a total agri-loan portfolio of P257.7 billion as of end-June this year.
The finance chief, who is also the ex officio chairman of the Landbank board, said the lender has since proven to be a reliable development partner for both private and government entities by acting as the primary distribution channel for the latter’s financial assistance programs.
He noted how Landbank has continued to evolve, even expanding its mandate to serve other key sectors in support of the government’s move towards greater financial inclusion and national development.
The bank has since granted loans and spearheaded lending programs to support Housing and Health, Local Government Units (LGUs), Small & Medium Enterprises (SMEs), as well as Microfinance Institutions (MFIs), especially those that have been struggling during the pandemic. It has also intensified efforts to target individual farmers and fishers.
Landbank is one of the government financial institutions mandated under the Agriculture, Fisheries, and Rural Development Financing Enhancement Act of 2022 (Agri-Agra law) to manage a special fund.
Diokno also acknowledged the bank’s leading role in modernizing the banking sector through the establishment of the Overseas Filipino Bank (OFBank), the country’s first branchless and fully-digital government bank.
“I commend the bank for the recent launching of [the] PISO account, mainly targeting the underserved Filipinos,” he said. He also noted Landbank’s acquisition of the United Coconut Planters Bank as another milestone that further strengthened and improved the resilience of the institution.
Diokno aims to fast-track the roll-out of similar other programs in line with his goal of onboarding at least 70 percent of Filipino adults into the formal financial system by 2023.