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Corporate Governance


LANDBANK is fully compliant with the provisions of the Code of Corporate Governance.

CORPORATE GOVERNANCE SCORECARD* FOR GOCC 2021**

QUESTION

YES

NO

LINK SOURCE

1. Does the GOCC disclose a policy that:

a. Stipulates the existence and scope of its effort to address customer’s welfare?

 

Yes. See LANDBANK Mission and Corporate Social Responsibility Statement

b. Elaborates its efforts to interact with the communities in which they operate?

 

Yes. See Our Corporate Policy, and Corporate Social Responsibility Statement

c. Ensure that its value chain is environmentally friendly or is consistent with promoting sustainable development?

 

Yes. See Corporate Social Responsibility Statement

2. Does the GOCC disclose the activities that it has undertaken to implement the abovementioned policies?

a. Customer health and safety

 

Yes. Please see below:

1. Consumer Protection Programs

2. COVID-19 Mitigation Protocols

"b. Interaction with the communities

 

Yes. Please see below:

1. LANDBANK Corporate Social Responsibility Statement 

2. LANDBANK’s list of awards for PY 2021

3. Community Involvement:

c. Environmentally-friendly value chain

 

Yes, see our Environment-friendly value chain process

3. Does the GOCC have a separate Corporate Social Responsibility (CSR) report/section or sustainability report/section?

 

Yes. Please see LANDBANK CSR Statement page and the following: 

  1. LANDBANK donation to Odette-hit LGUs

  2. LANDBANK Share-A-Gift Program 

  3. LANDBANK Gawad Patnubay Scholarship Program

4. Where stakeholders interests are protected by law, stakeholders should have the opportunity to obtain effective redress for violation of their rights

a. Does the GOCC provide contact details via the company’s website or Annual Report which stakeholders ( e.g. customers, suppliers, general public, etc.) can use to voice their concerns and/or complaints for possible violation of their rights?

 

Yes. See LANDBANK's website "Contact Us" page 

5. Performance-enhancing mechanisms for employee participation should be permitted to develop.

a. Does the GOCC explicitly mention the health, safety and welfare policy for  its employees?

 

Yes. See Employee Health and Well-being (2021) and COVID-19 HR Advisory

b. Does the GOCC publish data relating to health, safety and welfare of its employees?

 

Yes. See Employee Health and Well-being (2021)

c. Does the GOCC have training and development  programmes  for its employees?

 

Yes. See LANDBANK 2021 Training Calendar

d. Does the GOCC publish data on training and development programs for its employees?

 

Yes. See LANDBANK 2021 Training Calendar

6. Stakeholders including individual employee and their representative bodies should be able to freely communicate their concerns about illegal or unethical practices to the board and their rights should not be compromised for doing this.

a. Does the GOCC have procedures for complaints by employees concerning illegal (including corruption) and unethical behavior?

 

Yes. Provided under Item D. General Guidelines/Policies and Procedures of Rights of Whistleblowers LBP AO No. 141, s. 2018 Revised Guidelines on Internal Whistleblowing and Reporting (pages 3-8)

b. Does the GOCC have procedures to protect an employee/person who reveals illegal/unethical behavior from retaliation?

 

Yes. See Rights of Whistleblowers LBP AO No. 141, s. 2018 Revised Guidelines on Internal Whistleblowing and Reporting page 5  

7. Quality of the Annual Report. Does the GOCC’s AR disclose the following items:

a. Corporate Objectives

 

Yes. See LANDBANK Vision and Mission , Our Corporate Policy and LANDBANK Business Model and Strategic Objectives

You may also see the following 2021 Performance Scorecard on the Transparency Seal:

b. Financial performance indicators

 

 

Yes. See Financial Performance. (The Audited FS is not yet available.)

c. Non-financial performance indicators

 

Yes. See the following:

  • Touchpoints

Touchpoint

Total as of December 2021

Branches

489 

(418 Branches and 71 Branch-lites)

Agri-hubs

9

ATMs

2,513

CDMs

222

Lending Centers

58

Mobile Branch

2

Mobile ATMs

9

Agent Banking Partners

 

216

POS Machine

1,426

  • Support to National Government Programs
  • Digital Banking Reach
  • ATM Availability Rate
  • Major IT Projects in 2021
    • Credit Risk Engine System (CRES) I Enhancement- Phase 1
    • Digital Lending System

    • Provision for Virtual Private Network (VPN) and other related activities

    • Digitization of Bank Documents

    • Internet Banking Upgrade

    • IST-ATM Switch System Version Upgrade

    • Systematics (Deposit System) Upgrade

    • Vocalink (InstaPay 2.0)

    • Credit Risk Engine System (CRES) Phase II

d. Details of whistleblowing policy

 

Yes. See Rights of Whistleblowers LBP AO No. 141, s. 2018 Revised Guidelines on Internal Whistleblowing and Reporting

e. Biographical details (directors)

 

Yes. See Board Qualifications, Educational Background And Experiences (2021)

f. Trainings or continuing education (directors)

 

Yes. See Board Qualifications, Educational Background And Experiences (2021)

8. Are the Annual Reports downloadable from the GOCC’s website?

 

AR is still not available.

9. Corporate Governance Confirmation Statement

a. Does the AR contain a statement confirming the company’s full compliance with the code of corporate governance and where there is non-compliance, identify and explain reasons for each such issue?

 

Yes. See Corporate Governance

10. Timely filing/release of annual/financial reports

a. Are the audited annual financial report/statement released within 60 days upon receipt from COA?

 

 

The Audited FS is not yet available.

b. Is the Annual Report released within 90 days from the release of the audited financial report?

 

 

AR is still not available.

c. Is the true and fairness/fair representation of the annual financial statement/reports affirmed by the board of directors/commissioners and/or the relevant officers of the company? 

 

 

The Audited FS is not yet available.

11. Corporate Vision/Mission

a. Has the Board of Directors reviewed the vision and mission/ strategy in the last financial year?

 

Yes. See Board’s Overall Responsibility 2021, which states that the LANDBANK Board reviewed and approved the Bank's Vision and Mission and Strategy Map on 09 June 2021, Board Reso. No. 21-417.

b. Does the Board of Directors monitor/oversee the implementation of the corporate strategy?

 

Yes. See Board’s Overall Responsibility 2021 

12. Did the GOCC achieve 90% in the PES?

 

 

Ongoing validation for C.Y. 2021

13. Code of ethics or conduct

 

 

 

a. Are the details of the code of ethics or conduct disclosed?

 

Yes. See 2021 Code of Conduct for LANDBANK Employees and Board of Directors

b. Does the GOCC disclose that all Directors/Commissioners, senior management  and employees are required to comply with the code?

 

Yes. See 2021 Code of the Code of Conduct for LANDBANK Employees and the Board of Directors (Coverage)

c. Does the company disclose how it implements  and monitors compliance with the code of ethics or conduct?

 

Yes. See 2021 Code of the Code of Conduct for LANDBANK Employees and the Board of Directors (Compliance to the Code)

14. Does the Board appoint  a Nomination Compensation/Renumeration Committee?

 

Yes. See Board-Level Committees including Membership and Function, Corporate Governance Committee, pages 8-9

15. Did the Nomination Compensation/Remuneration Committee meet at least twice during the year?

 

Yes.See Board-Level Committees including Membership and Function, Corporate Governance Committee, pages 8-9, which states that based on its charter, the Corporate Governance Committee has to meet at least every quarter of every year. It held a total of nine meetings in 2021.

16. If yes, is the report of the Nomination Compensation/Renumeration Committee publicly disclosed?

 

Yes. See Board-Level Committees including Membership and Function, Corporate Governance Committee, pages 8-9, which states that the CG Com issued 68 resolutions which tackled the results of the Performance Rating System, organizational changes, establishment of Lending Centers, promotions of senior officers and personnel movements.

17. Does the Board appoint  an Audit Committee?

 

Yes.  Please refer to Audit and Compliance Committee section of  Board-Level Committees including Membership and Function, pages 1-3 (as of December 31, 2021).

18. If yes, is the report of the Audit Committee publicly disclosed?

 

Yes. The AC Com’s oversight responsibilities and accomplishment report are incorporated in the Bank’s Annual Report which is posted in the LANDBANK website hence, available to the public. Please refer to Functional Supervision of the Audit and Compliance Committee of the Board-Level Committees including Membership and Function, pages 1-3

19. Does at least one member of the Audit Committee have an audit, accounting or finance background  (qualification  or experience)?

 

Yes.  Please see Membership to Board-Level Committees.

The following AC Com members have Audit and Finance Background:

Director Jesus V. Hinlo , Jr.

Director Jaime Miralles

Director Virgilio DV. Robes

20. Did the Audit Committee meet at least four times during the year?

 

Yes, it meets at least once a month. Please refer to Board-Level Committees including Membership and Function, last paragraph, which states that “The Committee meets at least once a month and held a total of 6 meetings in 2021.”

21. Does the Board appoint a Risk Management Committee?   Yes. See LANDBANK Risk Management (RM) Philosophy & Culture, particularly the 2nd sentence of the 1st paragraph and Board-Level Committees including Membership and Function, Risk Oversight Committee, pages 4-5

22. If yes, is the report on Risk Management  Committee publicly disclosed?

 

Yes. See page 32 to 34 under Board-Level Committees including Membership and Function, Risk Oversight Committee

23. Does at least one member of the Risk Management  Committee have a background  in finance and investments?

 

Yes. See page 32 under Board-Level Committees including Membership and Function. Please see the table - - DOF Secretary Carlos G. Dominguez represented by Deputy Treasurer Erwin D. Sta. Ana has background in finance & investment

24. Board meetings and attendance

a. Are the Board of Directors meetings scheduled at the beginning of the year? (end of Q1)

 

Yes. See Board Meetings and Attendance 2021, which states that the schedule of the meetings of the Board of Directors is agreed upon at the beginning of the year. For CY 2021, this was agreed upon during the Board meeting held on January 13, 2021.

b. Does the Board of Directors meet at least monthly?

 

Yes. See Board Meetings and Attendance 2021, 2nd statement of 1st paragraph, which states that in general, there are at least two meetings scheduled per month, held on every second and fourth Wednesday of each month, for a targeted total number of 24 meetings per year. 

c. Did the Board of Directors meet on at least 75% on their scheduled meetings?

 

Yes. See Directors' Attendance

d. Has each of the directors/commissioners attended at least 90% of all the board meetings held during the year?

 

Yes. See Directors' Attendance

e. Did the Board of Directors meet separately at least once during the year without the President/CEO present?

 

Yes. See Board Meetings and Attendance 20212nd paragraph,  which states that the non-executive Directors and the Heads of Internal Audit Group, Risk Management Group, Compliance Management Group and the Resident COA Representative were able to meet separately on November 16, 2021, without the presence of the President and CEO, in compliance with the BSP and GCG requirements.

25. Access to information

a. Does the GOCC have a policy that stipulates board papers for Board of Directors/Commissioners meetings be provided to the Board at least three (3) working days in advance of the board meeting?

 

Yes. See Board Meetings and Attendance 20214th statement of 1st paragraph, which states that as much as practicable, materials for the Board meeting are sent to the members of the Board at least three business days before the Board meeting.

b. Is the Board Secretary trained in legal, accountancy or company secretarial practices?

 

Yes. See Board Meetings and Attendance 2021last statement of 1st paragraph, which states that the Corporate Secretary from January to December 2021 was Atty. Myra-Lyn S. Peñalosa, who has been a member of the Philippine Bar since 1997.

26. Internal Audit

a. Does the company have a separate internal audit function?

 

Yes, thru the Internal Audit Group.  Please refer to Units under the Board of Directors (Internal Audit Group).

b. Is the head of internal audit identified or, if outsourced,  is the name of the external firm disclosed?

 

Yes, the head of the Internal Audit Group is the head of the internal audit, who is a bank employee.  The external auditor is the Commission on Audit, Land Bank being a government entity.

Please refer to Land Bank of the Philippines Organizational Structure

c. Does the appointment  and removal of the internal auditor require the approval of the Audit Committee?

 

Yes. Under the Audit and Compliance Committee Charter, Section 6.1.a., one of the responsibilities of the Committee in the functional supervision over IAG and CMG is to endorse to the Board the appointment or removal of the Heads of IAG and CMG.

27. Risk Oversight

a. Does the company disclose the internal control procedures/risk management  systems it has in place?

 

Yes. See LANDBANK Risk Management (RM) Philosophy & Cultureparticularly the 1st sentence of the 5th paragraph, stating that: "At the Strategic Level, the LANDBANK Board through the Risk Com and Senior Management, are actively involved in an enterprise-wide RM oversight which involves formulation and approval of RM framework, policies and strategies, internal controls, and RM system as well as the annual review thereof.

b. Does the Annual Report disclose that the board of Directors/Commissioners have conducted a review of the company's material controls (including operational,  financial and compliance controls) and risk management  systems?

 

Yes. See LANDBANK Risk Management (RM) Philosophy & Culture,page 1 of 34, particularly the 2nd sentence of the 5th paragraph, stating that:

"The LANDBANK Board and Senior Management are also involved in an organizational-wide risk monitoring  which is used as basis for decision-making and review of LANDBANK's controls/mitigating measures (operational, financial & compliance control) and RM system."

c. Does the company disclose how key risks are managed?

 

Yes. See LANDBANK Risk Management (RM) Philosophy & Culture pages 3 to 29under the topics 1. Credit RM 2. Market RM, 3. Liquidity RM, 4. Interest Rate Risk in the Banking Book 5. Operational RM 6. Information Security & Technology RM

d. Does the Annual Report contain a statement from the Board of Directors or Audit Committee commenting  on the adequacy of the GOCC's internal controls/risk  management  systems?

 

Yes. See LANDBANK Risk Management (RM) Philosophy & Culture  page 1 of 34, particularly the 4th paragraph stating that: “Results of audit engagements disclosed that the Bank’s overall internal control, risk management, and compliance processes provide reasonable assurance that the operating objectives are met in the areas of: (1) efficiency and effectiveness of operations; (2) reliability, timeliness, and transparency of internal and external information; and (3) compliance with laws, regulations, bank policies, and contracts."

28. Board Chairman

a. Do different persons assume the roles of Chairman and CEO?

 

Yes. See Board Composition 2021which states that the positions of Chairman of the Board, and President & CEO, are held by two different persons. The Chairman of the Board is Sec. Carlos G. Dominguez, Secretary of the Department of Finance, while the President & CEO is Cecilia C. Borromeo, who is also the Vice-Chairperson.

29. Board of Directors Development

a. Does the GOCC have orientation programmes  for new Directors?

 

Yes. See Orientation and Education Program for Directors and Senior Management , 3rd paragraph

b. Does the GOCC have a policy that encourages Directors/Commissioners to attend on-going or continuous professional  education programmes?

 

Yes. See Orientation and Education Program for Directors and Senior Management 1st and 2nd paragraphs

c. Did all Appointive Directors attend at least 1 training for the calendar year?

 

Yes. See Relevant Qualifications and Experiences Including Directorship and Officership in Other Companies. (2021), thus: 

Dir. Jaime L. Miralles 
Dir. Jesus V. Hinlo, Jr. 
Dir. Nancy D. Irlanda 

Dir. Virgilio D. Robes

30. Board Appraisal

a. Is an annual performance  assessment  conducted of the Board of Directors assessment?

 

Yes. See Performance Assessment Program for the Board of Directors 2021

b. Does the GOCC disclose the process followed in conducting the Board assessment?

 

Yes. See Performance Assessment Program for the Board of Directors 2021

c. Does the GOCC disclose the criteria used in the Board assessment?

 

Yes. See Performance Assessment Program for the Board of Directors 2021

31. Committee Appraisal

a. Is an annual performance  assessment  conducted of the Board of Directors Committees?

 

Yes. See Performance Assessment Program for the Board of Directors 2021.

BONUS

Stakeholder's Relationship: Does the GOCC practice Global Reporting Index (GRI) on its annual reports?

 

 

AR is still not available.

Disclosure and Transparency: Are the audited annual financial report/statement released within 30 days upon the receipt from COA?

 

 

The Audited FS is not yet available.

PENALTY

Responsibilities of the Board

a. Are there members of the Board of Directors who hold more than five (5) positions in GOCCs and PLCs?

 

None. There is no member of the Board of Directors who holds more than five (5) positions in GOCCs and PLCs. See Board Qualifications, Educational Background And Experiences (2021)
. 

b. Is there non-compliance with Good Governance Conditions?

 

None. See Corporate GovernanceLBP is fully compliant with Good Governance Conditions

 

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*Based on the prescribed format of the Governance Commission for GOCCs. 
**Latest available data/reports