Paper
Is LandBank EO138 Ready?
Examining how LandBank, Philippines can comply with the Executive Order 138
6 pages
LandBank, Philippines was created in the year 1963, with the main purpose of financing large agriculture estate purchases and reselling the land to small farmers. It functioned both as a commercial and a development bank.
The author gives an overview of LandBank and examines issues related to the bank and the banking system. He suggests that as the banking sector becomes more competitive with the presence of international private banks, LandBank should take adequate steps to be able to compete.
- It should promote itself as a bank for the agriculture sector and cater to local farmers and fisherfolk;
- It should re-examine its operations and adopt prudent measures for risk mitigation and cost reduction.
The steps required for LandBank to become EO 138 compliant are:
- Transform LandBank into a microfinance development institution and restructure operations to focus on farmers, artisans, and small entrepreneurs;
- Distinguish the role of LandBank as a financial service provider to small farmers, from the role of development banks that support large development projects.
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