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LANDBANK supports Agri-Agra Law amendments to expand loan access for farmers, fishers


May 16, 2021

The Land Bank of the Philippines (LANDBANK) fully supports the ongoing Senate initiative to amend the provisions of Republic Act. No. 10000, otherwise known as the Agri-Agra Reform Credit of 2009 (Agri-Agra Law), which will provide farmers and fishers nationwide an expanded and easier access to responsive agricultural financing.

During a public hearing on the proposed Agri-Agra Law amendments on May 12, 2021, the state-owned Bank also welcomed recommendations from legislators to revisit its loan application requirements, specifically for small farmers and fishers, to make it easier for them to access financing.

In 2019, prior to the ongoing Agri-Agra law revisit, LANDBANK started simplifying its loan processes to make the Bank’s programs more accessible to small farmers and fishers.

First, the loan application form was condensed from three (3) documents to just one (1) document, and was reformatted with mostly tick boxes for easier completion. Second, the Promissory Note was significantly trimmed from 14 pages to only 1 page.

LANDBANK has also consistently complied with the Agri-Agra Law, which requires all banking institutions to allot 15% of their total lending portfolio for agriculture loans and 10% for agrarian reform credit.

As of December 2020, LANDBANK’s agriculture loans reached 76.95% and 11.52% for agrarian reform. Overall, LANDBANK’s agriculture lending has been consistently growing from P222.05 billion in 2018, to P236.31 billion in 2019, and P237.62 billion in 2020.

Likewise, as of March 31, 2021, LANDBANK’s total loan portfolio to the agriculture sector also grew by 4.8% to P229.70 billion from P219.24 billion last February. The increase is primarily attributed to a 9.5% rise in loans released to small, medium and large enterprises.

Of the P229.70 billion total outstanding loans, P36.27 billion benefitted small farmers and fishers, cooperatives and farmers’ associations, rural financial institutions and other conduits.

In partnership with the Department of Agriculture (DA) and Department of Agrarian Reform (DAR), LANDBANK has also assisted cumulatively 2,696,839 farmers and fishers nationwide as of end-March 2021. This represents increases of 14,147 beneficiaries from February, and 25,990 for the first three months of the year.

Just last month, LANDBANK also culminated its Online Stakeholder’s Consultation Forum towards addressing emerging challenges and issues faced by clients in accessing agricultural credit amid the COVID-19 pandemic.

The Forum facilitated knowledge sharing with key players in the agribusiness value chain to help the Bank further improve the accessibility of its lending products and services, especially under the new normal.  

Online survey and focus group discussions were conducted to gain insights and suggestions from farmers and fishers groups, agri-input suppliers, aggregators and traders, processors, and wholesalers and exporters.

For more updates, please follow the official LANDBANK Facebook, Instagram and YouTube accounts (@landbankofficial), and Twitter (@LBP_Official); join our Viber community (@LANDBANK); or visit the LANDBANK website (www.landbank.com).


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LANDBANK certified anew to ISO standards amid pandemic

  State-run Land Bank of the Philippines (LANDBANK) has secured continuous certification for ISO 9001:2015 Quality Management System (QMS) and ISO 14001:2015 Environmental Management System (EMS) standards until December 2022, underscoring the Bank’s steadfast commitment to delivering quality financial and support services towards promoting sustainable and inclusive development. Certification International Philippines, Inc. (CIP)—a local consulting company that specializes in ISO recognition—completed the remote second surveillance audit of the Bank’s Head Office, 13 branches, and four field units from July to September 2021. “This recognition is in line with our thrust to promote excellent customer service as part of serving the nation. Next year, we will raise the bar even higher by expanding our performance commitments to include the continued certification to the EMS standards to fully comply with the Sustainable Finance Framework of the Bangko Sentral ng Pilipinas (BSP),” said LANDBANK President and CEO Cecilia C. Borromeo. During the closing meeting on 29 September 2021, CIP commended LANDBANK’s Management System and personnel for its adaptability to the changing demographics, risks, market demands, and innovations in the industry while navigating the challenges of the COVID-19 crisis. “The commitment of the competent LANDBANK personnel is a key driver in its successful maintenance of the Integrated Management System (IMS). LANDBANK remains very strong and is even stronger during the pandemic,” CIP said. CIP also gave positive feedback to the Bank’s regular conduct of Management Review and Field Unit staff meetings, which was classified as an excellent way of constantly reviewing the Bank’s performance. The Bank was also commended for its consistency in upholding internal policies and procedures from the head office to the field units, as sampled units continued to achieve high targets despite the challenging task of physically reporting for work at the height of the pandemic. ISO 9001:2015 is an international standard dedicated to Quality Management Systems (QMS). It outlines a framework for improving quality and a vocabulary of understanding for any organization looking to provide products and services that consistently meet the requirements and expectations of customers and other relevant interested parties in the most efficient manner possible. LANDBANK’s continued certification to the QMS standards is part of its 2021 performance commitments to the Governance Commission for GOCCs (GCG), while the EMS standards signifies the Bank’s continued commitment to the preservation of the environment and the efficient management of its resources.

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LANDBANK retail dollar bond sales top US$205-M

  The Land Bank of the Philippines (LANDBANK) contributed US$205.27 million or close to 13% of the US$1.593 billion generated from the maiden Retail Dollar Bond (RDB) offering of the Bureau of the Treasury (BTr). The proceeds will fund infrastructure projects and boost health services to fast-track the country’s ongoing economic resurgence, after suffering from debilitating effects of the COVID-19 pandemic. From 15 September to 1 October 2021, the state-run Bank sold the RDB offer through various investment channels, which allowed Filipino retail investors worldwide to participate in the said offering safely and conveniently. Of LANDBANK’s total RDB sales, US$95 million was raised during the rate-setting auction at the launch event held on September 15. The remaining US$109.94 million and US$329,700 were facilitated via over-the-counter placements at LANDBANK branches and online channels, respectively. About US$203,500 of LANDBANK’s RDB sales online was facilitated through the mobile banking application (MBA) of the Overseas Filipino Bank (OFBank)—the official digital bank of the Philippine government and a subsidiary of LANDBANK. Likewise, US$107,800 was transacted using the LANDBANK MBA, while the remaining US$18,400 was processed through the BTr’s Online Ordering Facility via LANDBANK’s Link.BizPortal. “A significant draw to the RDB offering was the availability of various investment channels that provided greater convenience and accessibility to retail investors worldwide. The wide participation in this offering also demonstrates the increasing appreciation for the government’s affordable and higher-yielding investment instruments that spur economic recovery and development,” said LANDBANK President and CEO Cecilia C. Borromeo. The RDBs are United States (US) dollar-denominated bonds offered at a minimum investment of US$300 and increments of US$100 thereafter, with annual interest rates of 1.375% and 2.25% for the five- and 10-year bonds, respectively. Interest payments will be paid quarterly during the term of the bond. LANDBANK is Joint Lead Issue Manager for the RDB issuance, as part of its continued support to advance greater financial inclusion and raise state resources for timely and responsive recovery and development initiatives.

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LANDBANK’s P50-M loan ‘links’ La Union town to a promising future

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