Landbank remains financially strong despite P50-B MIF transfer

The Land Bank of the Philippines has assured its stakeholders of its financial stability and regulatory compliance following the allocation of P50 billion to the Maharlika Investment Fund (MIF).

In a statement released recently, Landbank emphasized that it continues to meet and even surpass the Bangko Sentral ng Pilipinas’ (BSP) minimum Capital Adequacy Ratio (CAR), a critical measure of a bank’s financial health. As of end-November 2024, Landbank reported a CAR of 16.24 percent, well above the BSP’s 10 percent regulatory requirement.

“Following the P50-billion seed capital allocation to the MIF in September 2023, Landbank’s CAR stood at 16.2 percent, remaining comfortably above regulatory requirements and reflecting the Bank’s commitment to financial stability,” the bank stated.

Landbank further explained that its request for regulatory relief from the BSP is a proactive move to strengthen its resilience. It highlighted its adherence to prudent financial management practices and its strategic use of resources to support agriculture, fisheries, rural development, and other critical sectors.

The state-run bank also noted its significant contribution to national development, having delivered a record-high P32.12 billion in cash dividends to the national government, the largest amount among government-owned and controlled corporations.