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House panel seeks to amend LandBank charter

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Zandro Ochona, ABS-CBN News

<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img alt="Landbank ABS-CBN News/File" src="https://sa.kapamilya.com/absnews/abscbnnews/media/2021/business/02/18/20210119-banking-institutions-makati-jc-19.jpg"/><figcaption>Landbank in Makati on January 19, 2021. <em>Jonathan Cellona, ABS-CBN News/File</em></figcaption></figure></div><p>MANILA - The House Committee on Banks and Financial Intermediaries is seeking to amend a 1963 law that created the Land Bank of the Philippines, and a presidential decree that expanded its functions.</p><p>In his explanatory note for House Bill 10440 reorganizing the Land Bank of the Philippines, Quirino lone district Rep. Junie Cua said LandBank has grown as &quot;an institution from being the financing arm of the agrarian reform program to become the second-largest full service-commercial bank in the country in terms of assets.”</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/11/03/21/digital-banks-to-help-drive-economic-recovery-says-bsp">Digital banks to help drive economic recovery, says BSP</a></li></ul><p>On July 21, 1973, through Presidential Decree no. 251, the bank’s function was expanded, becoming the first universal bank in the country.</p><p>The Comprehensive Agrarian Reform Law, as amended by the Comprehensive Agrarian Reform Program Extension with Reforms, identifies the bank as a financial intermediary of the national government for the agrarian reform program.</p><p>“It has also transformed further into a policy-oriented financial entity supporting the national government’s socio-economic development agenda as embodied in the Philippine Development Plan 2017-2022,” said Cua who also chairs the House committee.</p><p>Cua also cited the crucial role of the economic recovery efforts from the COVID-19 crisis because of the various policy intervention through the Bayanihan 1 and 2 laws, which served as the backbone of the state’s economic rescue efforts.</p><p>The bank also consistently complied with the Agri-Agra law which requires banking institutions to allot 15% of their total lending portfolio for agricultural loans.</p><p>“The constantly evolving Philippine financial landscape, coupled with the Bank&#x27;s redefined roles in supporting the national government’s sustainable development agenda, necessitates to institute a standalone legal and operational framework for LandBank,” said Cua.</p><p>“This policy initiative seeks to amend the LandBank Charter that will place the Bank in a stronger position to pursue further the policy thrusts of the national government especially on countryside development while sustaining its institutional viability amid a highly competitive banking industry,&quot; he said.</p><p>Land Bank president and CEO Cecilia Borromeo believes the measure will ensure the bank will keep up with its mandate to be inclusive of the national economy.</p><p>&quot;Amending the LandBank Charter to institute a standalone legal and operational framework for the bank will place it in a stronger position to pursue further the developmental objective of the bank while keeping up with constantly shifting financial landscape, sustaining its institutional viability amid a highly competitive banking industry,&quot; Borromeo said.</p><p>&quot;The proposed amendments to the Charter shall enhance its function to allow the bank to boost its capital-raising capabilities, sustain a competitive workforce and streamline its banking processes.&quot;</p><p>Among the proposed amendments include opening up one-third of the government-owned bank to private entities such as small farmers, fisherfolks, organizations, among others as approved by the finance secretary and upon the recommendation of the board of directors.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/09/16/21/digitalization-boosts-ph-financial-inclusion">Digitalization boosts PH financial inclusion</a></li></ul><p>The national government, under the proposal, shall at all times maintain its two-thirds ownership.</p><p>However, the Department of Finance suggested a 20% allocation to private entities but is still subject to finalization and clarification.</p><p>The House banks and financial panel is set to finalize and approve the bill next week on its final form.</p><div><strong>RELATED VIDEO</strong></div><figure class="op-interactive"><iframe allow="autoplay; fullscreen" frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=1825896" width="100%"></iframe></figure><div class="iwantbar">Watch more in <a href="//www.iwantv.com.ph/">iWantv</a> or <a href="//tfc.tv/">TFC.tv</a></div>

On July 21, 1973, through Presidential Decree no. 251, the bank’s function was expanded, becoming the first universal bank in the country.

House panel seeks to amend LandBank charter

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House panel seeks to amend LandBank charter

Zandro Ochona,

ABS-CBN News

Published Nov 10, 2021 07:12 PM PHT

Read More:

LandBank

House Committee on Banks and Financial Intermediaries

Comprehensive Agrarian Reform Law

Comprehensive Agrarian Reform Program Extension with Reforms

COVID-19

Department of Finance

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