Is LandBank EO138 ready?

Is LandBank EO138 ready?

The recent reforms and development in the financial market necessitate the reexamination of the role of Land Bank of the Philippines. This issue argues that LBP should focus on its development function and give up its commercial and investment roles. Once LBP is transformed into a market-based microfinance development institution, the creation of Grameen-type bank is dispensable.

If the LandBank is to meaningfully serve the provi- sions of EO No. 138 and provide financial services to the basic sectors, then it should focus on its development banking function and shed off its commercial and invest- ment banking functions. More specifically, LandBank should be transformed into a real market-based microfinance de- velopment institution, providing financial services to the basic sectors either directly or indirectly through private microfinance institutions. In this way, LandBank can play a more significant role in enhancing employment opportuni- ties both in rural and urban areas and in raising the pro- ductivity and incomes of small farmers, landless farm workers, fisherfolk, cottage industries and SMEs.