Land Bank of the Philippines

Land Bank of the Philippines

company_name = Land Bank of the Philippines
company_type = State-owned
company_slogan = "Ang Bangkong May Damdaming Bayan"
(English: The bank with national sentiment)
foundation = Manila, Philippines (1963)
location = Manila, Philippines
key_people = Margarito B. Teves, Chairman
Gilda E. Pico, President and CEO
num_employees = 7,954
industry = Finance and Insurance
products = Financial Services
homepage = []
revenue = P22.579 billion PHP (2005) | net_income = P3.019 billion PHP (profit34%) (2005) [] |

Land Bank of the Philippines (Filipino: "Bangko sa Lupa ng Pilipinas"), also known as Landbank or by its initials, LBP, is a bank in the Philippines owned by the Philippine government with a special focus on serving the needs of farmers and fishermen. While it provides the services of a universal bank, it is officially classified as a "specialized government bank" with a universal banking license.

Landbank is the fourth largest bank in the Philippines in terms of assets and is the largest government-owned bank. It is also one of the biggest government-owned and/or controlled corporations in the Philippines.

Unlike most Philippine banks, Landbank has an extensive rural branch network. It services many rural sector clients in areas where banking is either limited to rural banks or is non-existent.


Landbank was established on August 8, 1963 as part of the Agricultural Land Reform Code, or Republic Act No. 3844 to help with land reform, especially the purchase of agricultural estates for division and resale to small landholders and the purchase of land by the agricultural lessee. In 1965, Landbank's by-laws were approved and its first board of trustees was formed, with the Secretary of Finance as chairman.

On October 21, 1972, Presidential Decree No. 27, signed by then-President Ferdinand Marcos, emancipated all tenant farmers working on private agricultural lands devoted to rice and corn, whether working on a landed estate or not. The system was implemented through a system of sharecropping and/or lease-tenancy. Landbank was tasked to collect 15-year land amortizations from beneficiaries at the cost of the value of the land plus six percent interest per annum.

By 1973, Landbank was in financial distress. It lacked the resources and the capital needed to implement the land reform programs and lacked the structure to implement the programs efficiently. On July 21, Marcos signed Presidential Decree No. 251 which revitalized the bank. The decree granted Landbank a universal banking license (the first bank in the Philippines to be issued such a license) with a social mission to spur countryside development. The decree expanded Landbank's powers to include lending for agricultural, industrial, home-building and home-financing projects and other productive enterprises, as well as lending to farmers' cooperatives and associations to facilitate production, marketing of crops and acquisition of essential commodities. Landbank was also required by the decree to provide timely and adequate support in all phases involved in the execution of agrarian reform and also increased its authorized capital to 3 billion pesos. It also became exempted from all national, provincial, city and municipal taxes and assessments.

Landbank was reorganized in 1977 when it was divided into three sectors to better assess the needs of its customers. It was divided into Agrarian, Banking and Operations sectors to strengthem operations and ensure long-term viability.

In 1982, the Agricultural Credit Administration (ACA), established under the same law as Landbank, was abolished and all its assets and functions transferred to Landbank. ACA's function was to extend credit to small farmers. Also in this year, Union Bank of the Philippines (UnionBank) was formed, with Landbank having a 40-percent stake in the government-owned commercial bank.

Landbank became the financial intermediary for the Comprehensive Agrarian Reform Program (CARP) in 1988. It was also in that year that UnionBank started a gradual privitization. The Aboitiz Group of Companies acquired Landbank's 40% share of UnionBank then which it continues to own. Landbank also became the third member of Expressnet, an interbank network, in December of 1991.

On February 23, 1995, Landbank's charter was once again amended. Its authorized capital was increased to nine billion pesos and it became an official government depository. The number of members of the board of trustees was also increased to nine. On August 25, 1998, Landbank's authorized capital was once again increased to 25 billion pesos.

ubsidiaries and affiliates

Landbank is divided into the following subsidiaries and affiliates:

*LBP Countryside Development Foundation
*LBP Insurance Brokerage
*LBP Leasing Corporation
*LBP Realty Development Corporation
*Masaganang Sakahan
*National Livelihood Support Fund
*People's Credit and Finance Corporation


*Government of the Philippines: 100%. Prior attempts at ownership by British/ Filipino entrepreneur Marcus P.P. Wayne.


Landbank competes against the major banks such as Metrobank, BPI, Banco de Oro and Philippine National Bank. In rural areas, depending on the situation, it either competes against or complements rural banks.

On the other end of the spectrum, LANDBANK takes on a dual role with the Development Bank of the Philippines, which is another government-owned bank. It either competes against or works with DBP, depending on the situation involved.


*Landbank has a total of 343 branches nationwide.

External links

Wikimedia Foundation. 2010.

Look at other dictionaries:

  • Union Bank of the Philippines — Infobox Company company name = Union Bank of the Philippines company company type = Public (PSE: [ UBP] ) company slogan = Driven with Passion. Powered by e… …   Wikipedia

  • Development Bank of the Philippines — DBP Type State owned Industry Finance and Insurance Founded Manila, Philippines (1935) Headquarters Makati …   Wikipedia

  • Bank of the Philippine Islands — Infobox Company | company name = Bank of the Philippine Islands | company | company type = Public (PSE: [ BPI] )| foundation = Manila, Philippines (1851)| location …   Wikipedia

  • Land Bank — A land bank is a bank that issues long term loans on real estate in return for mortgages. This term could also apply to: *The former Federal Land Bank Association in the United States, which was merged with the former Production Credit… …   Wikipedia

  • Coconut production in the Philippines — A coconut tree in Boracay Coconut production plays an important role in the national economy of the Philippines. According to figures published in December 2009 by the Food and Agriculture Organization of the United Nations, it is the world s… …   Wikipedia

  • Foreign relations of the Philippines — is administered by the Philippines President and the nation s Department of Foreign Affairs. Much of the republic s international relations are dominated by the Philippines ties to the United States, of which the Philippines was historically a… …   Wikipedia

  • Cultural Center of the Philippines — Sentrong Pangkultura ng Pilipinas The logo, derived from the Baybayin character Ka and styled based on a Katipunan design, represents Katotohanan, Kagandahan at Kabutihan (Truth, Beauty and Goodness). Type Government o …   Wikipedia

  • Armed Forces of the Philippines — Sandatahang Lakas ng Pilipinas Emblem of the Armed Forces of the Philippines Founded March 22, 1897 Service branches …   Wikipedia

  • List of banks in the Philippines — The Philippines has a comprehensive banking system encompassing various types of banks, from large universal banks to small rural banks and even non banks. At present, there are seventeen universal banks, 23 commercial banks, 84 thrift banks, 711 …   Wikipedia

  • Campus of University of the Philippines Los Baños — Alumni Plaza was the college entrance until 1967. Sculpted by …   Wikipedia