I.

Introdution

I.2 Company Background

Land Bank of the Philippines was created on August 8, 1963 under the Republic Act

3844 (Agricultural Land Reform Code) which states that the institution is to finance the

acquisition and distribution of agricultural estates for division and resale to small

landholders as well as the acquisition of the landholding by the agricultural lessee.

In July 1973, the Bank was granted enhanced commercial banking capabilities by

Presidential Decree (PD) No. 251, making it the first universal bank by charter and

allowing it to continue its social objective of promoting rural development. PD No. 251

gave the Bank the authority to make loans to agricultural, industrial, home-building or

home-financing projects, and other productive enterprises, as well as to provide credit to

farmers' cooperatives and associations to help them with crop production and

marketing, as well as the acquisition of essential commodities.

The company’s main office is located at Malate, Manila and it is owned by the

Philippine government with P 11.97 billion in common shares. It's a government-owned

financial institution that manages to accomplish its social mission of fostering rural

development while remaining financially viable.

Following the passage of the Comprehensive Agrarian Reform Law (Republic Act

No. 6657) in 1988, the Bank was designated as the government's financial intermediary

for the Comprehensive Agrarian Reform Program (CARP). The government established

an Agrarian Reform Fund to pay landowners in cash and bonds for land that was either

forced or willingly taken from them.

 In rural areas, Land Bank is the largest formal credit institution. In terms of deposits,

assets, and loans, it is among the top five commercial banks in the country. Small

farmers and fishers, micro and SMEs, agri- and aqua-projects of local government units

and government-owned and controlled corporations, communications, transportation,

housing, education, health care, environment-related projects, tourism, and utilities are

among the institution's priority sectors.

The government delegated to the Bank the primary responsibility for determining

land valuation and compensation for land acquisition, which had previously been

handled by the Department of Agrarian Reform.

The Parent and its subsidiaries (Group) provide banking, financing, leasing, real

estate, insurance brokerage, and other related services to individuals, businesses,

corporations, and institutions. Deposit-taking, lending and related services, treasury and

capital market operations, trade services, payments and cash management, and trust

services are among the Group's products and services.