Government Agency — Transparency Portal

Institutional Identity

Land Bank of the Philippines

LBP

Established: August 8, 1963

Legal Basis: Republic Act No. 3844

The Land Bank of the Philippines (LANDBANK) is a government financial institution that strikes a balance in fulfilling its social mandate of promoting countryside development while remaining financially viable. This dual function makes LANDBANK unique — the profits derived from its commercial banking operations are used to finance the Bank's developmental programs and initiatives. Over the years, LANDBANK has successfully managed this tough balancing act, as evidenced by the continued expansion of its loan portfolio in favor of its priority sectors: small farmers and fishers (a good part of whom are agrarian reform beneficiaries); micro and small enterprises (MSEs); agri- and aqua-projects of Local Government Units (LGUs) and Government-Owned and Controlled Corporations (GOCCs); and communications, transportation, housing, education, health care, environment-related projects, tourism, and utilities. LANDBANK is by far the largest formal credit institution in rural areas. It also ranks among the top five commercial banks in the country in terms of deposits, assets, and loans.

Year	Event
1963	Republic Act 3844 gave birth to the Land Bank of the Philippines in August. It started with P1.5 billion authorized capital and an initial capital of P200 million. LANDBANK started with only 10 personnel and held office at the ground floor of the ACA annex building along Taft Avenue, Manila.
1965	The Bank formally adopted its by-laws, its first table of organization, and its first manual of operations.
1966	The Bank’s staff grew from 10 to 23 and the office was moved from Agricultural Credit Administration Building, Taft Avenue, Manila to the Ramon Magsaysay Building along Roxas Boulevard, Manila.
1972	Presidential Decree (PD) 27, the Tenant Emancipation Act of the late President Ferdinand Marcos, Sr., allowed tenants to pay the landowners directly for farm lots transferred to them. PD 85 created the Agrarian Reform Fund Commission to reorganize LANDBANK
1973	Through PD 25, LANDBANK was vested with universal banking powers capitalized at P3 billion, with expanded services to include securities transactions, trust operations, and other banking and quasi-banking activities. It also allowed LANDBANK to borrow funds up to 10 times its paid-up capital to finance various farmers assistance programs.
1974	LANDBANK transferred to the 6th floor of the BF Condominium Building in Intramuros, Manila with various departments activated, such as: Cash, Legal, Personnel, etc. LANDBANK’s first regional branches were setup in Cabanatuan, Iloilo, Naga, Pampanga, Tarlac, Isabela, and Makati. Masaganang Sakahan, the first subsidiary of LANDBANK, was created.
1977	LANDBANK formed three major sectors - Agrarian, Banking, and Operations - to strengthen its operations and ensure long-term viability. LANDBANK launched the Integrated Estate Development Program to provide project areas with basic rural development infrastructure, processing facilities, and financial and technical support.
1982	Executive Order (EO) 816 was issued, transferring the functions of the Agricultural Credit Administration to LANDBANK. LANDBANK Insurance Brokerage, LANDBANK Leasing Corporation, and LANDBANK Educational Foundation were established.
1987	EO 229 or the Comprehensive Agrarian Reform Law (CARL) created the Presidential Agrarian Reform Council (PARC) to ensure timely and effective delivery of the necessary support services. EO 229 also established the Agrarian Reform Fund (ARF) with an interim amount of P50 billion to cover the financing requirements of the Comprehensive Agrarian Reform Program (CARP) with appropriations coming from the proceeds of the Asset Privatization Trust and the Presidential Commission on Good Government.
1988	RA 6657 (CARL) broadened the coverage of Agrarian Reform to include all public and private agricultural lands including other lands of the public domain suitable for agriculture. LANDBANK serves as the financial intermediary of the Comprehensive Agrarian Reform Program (CARP) primarily responsible for the valuation and determination of compensation for all private lands.
1990	EO 405 was issued transferring the primary responsibility of determining land valuation and compensation for all lands covered by the CARP from the Department of Agrarian Reform to LANDBANK. The Field Operations Group launched an annual search for outstanding small farmer cooperatives. LANDBANK allocated P100 million as capital infusion program for rural banks.
1995	RA 7907 (Amended LANDBANK Charter) increased authorized capitalization to P9 billion and established LANDBANK as the official government depository. EO 267 (CARL) came into effect with the National Government issuing Agrarian Reform Bonds to be used by LANDBANK for land transfer payments. LANDBANK opened its representative offices in Japan and Singapore.
1998	Authorized capitalization increased to P25 billion by the Department of Finance and the President of the Philippines.
2013	Through RA 10374, LANDBANK’s corporate life was extended for a period of 50 years from the expiration of its original term on August 8, 2013, and renewable for another 50 years.
2016	Through EO 198, authorized capitalization stock was increased from P25 billion to P200 billion. Capital infusion of at least P30 billion allowed LANDBANK to continue supporting the government’s sustainable and inclusive growth agenda. RA 10878 (Institutionalizing Direct Credit Support of LANDBANK to Agrarian Reform Beneficiaries, Small Farmers and Fisherfolk) mandates LANDBANK to allocate at least 5% of its regular loan portfolio for socialized credit to qualified small farmers, fisherfolk, and agrarian reform beneficiaries (ARBs).
2020	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) appropriated LANDBANK with P1 billion to subsidize the payment of interest on new and existing loans secured by LGUs from Government Financial Institutions (GFIs). LANDBANK appropriated P27.5 billion special funds to support wholesale banking and equity infusion for low interest loans to be extended to persons and entities engaged in industries affected by the COVID-19 pandemic.
2023	RA 11953, or the New Agrarian Emancipation Act signed by Philippine President Ferdinand R. Marcos, Jr. on 7 July 2023, condones all loans, including interests, penalties, and surcharges incurred by agrarian reform beneficiaries (ARBs) from land awarded to them under Presidential Decree (PD) 27, RA 6657, and RA 9700.