Land Bank of the Philippines

Milestone in Corporate Existence

1. Republic Act 3844 (Agricultural Land Reform Code) - 8 August 1963

• Created the Land Bank of the Philippines (LBP) to finance the acquisition and distribution of agricultural estates for division and resale to small landholders as well as the purchase of the landholding by the agricultural lessee;

• Authorized capitalization of 1.5 billion Php. Initial capital of 200 million Php;

• Members of the Board of Trustees

• Chairman - LBP President & CEO

• One member elected by the holder of preferred shares

• 4 Members: including the Head of Land Authority (now Dept. of Agrarian Reform)

• Tax exempt on all operations, holdings, equipment, property, income and earnings;

• Exempted from cash or stock dividend payments to the National Government;

• Agricultural Credit Administration (ACA) responsible for extending credit assistance to farmers cooperatives and directly to small farmers

2. Adoption of By-Laws and Creation of Board of Trustees

• Adopted the by-laws, established the first organizational chart and manual of operations in 1965;

• Formed the Board of Trustees with the Secretary of Finance as chairman in 1966

3. Presidential Decree 27 (Tenant Emancipation Act) - 21 October 1972

• Emancipation of tenant-farmers of private agricultural lands devoted to rice and corn under a system of share-crop or lease-tenancy, whether classified as landed estate or not;

• Value of land transferred to tenant-farmers at 2 1/2 times the average

• Harvest of 3 normal crop years immediately preceding the promulgation of PD 27;

• LBP to collect 15-year land amortizations from beneficiaries for the cost of the land plus 6% interest per annum

4. Presidential Decree 251 (Revitalizing LANDBANK) - 21 July 1973

• Because LBP was deficient and inadequate both in capitalization and in organization structure to meet the implementation requirements of agrarian reform, the Bank was revitalized;

• Granted universal or expanded commercial banking powers to LBP and established LBP as the universal bank with a social mission of spurring countryside development;

• to ensure LBP's financial stability and sustainability;

• Empowered LBP to grant loans to farmers cooperatives/associations to facilitate production, marketing of crops and acquisition of essential commodities;

• LBP mandated to provide timely and adequate support in all phases involved in the execution of agrarian reform;

• Increased authorized capitalization to 3 billion Php ;

• Increased the members of the Board of Directors to seven (7):

• Chairman - Secretary of Finance Vice-Chairman - LBP President Members (Ex-Officio) Secretary of Agrarian Reform Secretary of Labor * Three Members - elected annually

5. Executive Order 816 (Transfer of ACA to LBP) - 8 July 1982

• To adopt an integrated approach in the provision of financial assistance to AR farmer-beneficiaries a single institution is preferred;

• ACA was abolished and its functions (loans to small farmers) were transferred to LBP

6. Executive Order 229 (CARL) - 22 July 1987

• Created the Presidential Agrarian Reform Council (PARC) as the highest policy-making and coordinating body of the Comprehensive Agrarian Reform Program (CARP) to ensure timely and effective delivery of the necessary support services;

• Established the Agrarian Reform Fund (ARF) with an interim amount of 50 Php billion to cover the financing requirements of CARP with appropriations coming from the proceeds of the Asset Privatization Trust and the Presidential Commission on Good Government;

• FBs to pay for lands acquired and redistributed by the government in 30 equal annual amortizations at 6% p.a. with the first payment due one year after resale (annual amortization should not exceed 10% of the land's annual value of gross production);

• LBP to provide assistance to landowners through:

  • investment information and counselling assistance.
  • conversion and/or exchange of LBP Agrarian Reform bonds to/from government stocks with government assets.
  • marketing of LBP Agrarian Reform bonds.

7. Republic Act 6657 (CARL) - 10 June 1988

• Broadened the coverage of agrarian reform to include all public and private agricultural lands including other lands of the public domain suitable for agriculture;

• Payment to landowners at 25% to 35% cash and the balance in 10-year Agrarian Reform bonds with a yield of 91-day T-bills;

• Authorized LBP to collect from the FBs payment for lands awarded to them in 30 annual amortizations at 6% per annum;

• Established LBP as the financial intermediary of the CARP.

8. Executive Order 405 (CARP Land Valuation) - 14 June 1990

• Transferred the primary responsibility of determining land valuation and compensation for all lands covered under CARP from the DAR to the LBP;

• Accelerated and streamlined certain procedures in land valuation and compensation;

• LBP created regional Land Valuation and Landowners Compensation Offices (LVOs) to carry out land valuation and compensation.

9. Republic Act 7907 (Amended LBP Charter) - 23 February 1995

• Increased authorized capitalization to 9 billion Php ;

• Established LBP as an official government depository;

• Increased the members of the Board of Directors to nine (9) composed of:

  • Chairman - Secretary of Finance
  • Vice- Chairman - LBP President and CEO
  • Members:
    • Secretary of Agrarian Reform.
    • Secretary of Labor.
    • Secretary of Agriculture.
    • 2 Representatives of Agrarian Reform Beneficiaries
    • 2 Representatives from the Private Sector.

10. Executive Order 267 (CARL) - 25 July 1995

• National Government to issue Agrarian Reform (AR) bonds to be used by LBP for land transfer payments;
• Segregation of the accounts of CARP-related transactions from the books of LBP;
• CARP accounts and AR bonds were previously part of LBP's books and adversely affected LBP's financial position (leverage and capital adequacy ratios).

11. Increase of Authorized Capital - 25 August 1998

• Authorized capitalization increased to 25 billion Php by the Department of Finance and the President of the Philippines.

12. Increase Extension of LANDBANK’s Corporate Life – 5 March 2013

• Republic Act 10374, LANDBANK’s corporate life was extended for a period of 50 years from the expiration of its or its original term of Aug. 8, 2013, renewable for another 50 years.

13. Executive Order 198 (Increase in the Authorized Capital of LBP) - 04 February 2016

• LBP to increase its authorized capital stock from Php 25 billion to Php 200 billion
• Provision of capital infusion of at least Php 30 billion to allow LBP to continue supporting the government’s sustainable and inclusive growth agenda

14. Republic Act 10878 (Institutionalizing Direct Credit Support of LBP to Agrarian Reform Beneficiaries, Small Farmers and Fisherfolk) - 27 July 2016

• LBP to allocate at least 5% of its regular loan portfolio for socialized credit to qualified small farmers, fisherfolk and agrarian reform beneficiaries (ARBs)
• To offer and issue common and preferred shares of stocks to ARBs, small farmers and fisherfolk through their organizations, cooperatives, federations and cooperative banks; development partners and strategic investors such as multilateral and bilateral institutions; rural banks and their associations. Provided that the National Government shall maintain, at all times, at least two-thirds (2/3) ownership of the total outstanding common shares of the Bank

15. Republic Act 11494 (Providing for COVID-19 Response and Recovery Interventions and Providing Mechanisms to Accelerate the Recovery and Bolster the Resiliency of the Philippine Economy, Providing Funds therefore, and for Other Purposes) – 11 September 2020

• LBP appropriated with Php 1 billion to subsidize the payment of interest on new and existing loans secured by LGUs from government financial institutions (GFIs)
• Php 27.5 Billion to support wholesale banking and equity infusion of the LBP for low interest loans to be extended to persons and entities engaged in industries affected by the COVID-19 pandemic

We are the leading universal bank with a government mandate that provides responsive services beyond banking to all clients, publics and stakeholders.

By 2028, LANDBANK shall be at the forefront in nation building through the promotion of financial inclusion, digital transformation and sustainable development that benefits all Filipinos.

• Integrity
• Citizen-Centricity
• Proactive Service
• Collaboration
• Social Responsibility