PRESIDENT Duterte wants the Land Bank of the Philippines (LandBank) to go back to its original mandate of helping farmers and not burden them with too many requirements that are hard to comply with, Malacañang said.
This was revealed by Presidential Spokesman Harry L. Roque Jr. when asked about what transpired during the President’s meeting with LandBank officials on Wednesday.
“The President’s [order] to LandBank is to go back to its original mission and vision. LandBank grew and became a sophisticated universal bank [so the President wants it] to go back to its original mandate, help farmers even though they lack the needed requirements,” he said, adding that LandBank even requires a feasibility study.
The meeting supposedly happened on the same date of the release of an executive order on the reorganization of the National Food Authority Council (NFAC) and the restoration of the National Food Authority under the Department of Agriculture.
LandBank was retained as a member of the council but the Development Bank of the Philippines was removed.
“It is important that the bank be reminded that they are there to provide instant credit for the farmers, for those who want to plant and for those who are victims of disasters,” he said. “That’s what he wants to remind them, especially that in times of disaster like the [Typhoon] Ompong, giving immediate help is a must,” Roque added, noting the President does not want officials to “insist on a long list of requirements like any other [universal] bank would do so.”
Under Republic Act 3844, or the Agricultural Land Reform Code, the LandBank was created 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.
In 1973 LandBank was revitalized because it was deficient and inadequate in capitalization and in organization structure to meet the implementation requirements of agrarian reform. It was also granted universal or expanded commercial banking powers and was established with a social mission of spurring countryside development.
According to its web site, LandBank is by far the largest formal credit institution in the rural areas. It also ranks among the top 5 commercial banks in the country in terms of deposits, assets and loans.