Landbank needs to increase agricultural loan share significantly

Landbank's loans to the agriculture sector reached P755.1 billion in 2023, making up 51% of its total loans. There are calls for this share to increase to 80%, which could provide an additional P441.2 billion for agriculture. Currently, Landbank's status as a universal bank requires it to adhere to the Bangko Sentral ng Pilipinas' CAMELS ratings, which assess bank health. While Landbank achieved a record net income, its agriculture lending remains limited due to perceived risks. A recent meeting suggested a study to compare Landbank with successful agriculture banks in other countries. These banks often prioritize agriculture lending, even if it is risky, and may receive government support to do so.