Finance Secretary Carlos Dominguez III has commended the Land Bank of the Philippines (LandBank) for extending P655 billion in loans to rural communities as of June this year, in step with the Duterte administration’s goal of stimulating the economy and encouraging the growth of enterprises in the countryside.

Dominguez said this amount of financial assistance represents a “very good ratio” and underscores the LandBank’s commitment to being a growth catalyst for small clients, cooperatives and micro, small and medium enterprises (MSMEs), especially in rural communities.

He said the LandBank has been a key player in helping fulfill the government’s goal of financial inclusion with its rollout of financial literacy programs in rural areas that are beyond the reach of other banking institutions.

Through its “Ipon at Kabuhayan Para sa mga Kababayan (Savings and Livelihood for the People): Land Bank Financial Inclusion Caravan,” the LandBank was able to reach out to thousands of unbanked Filipinos in third- and fourth-class municipalities across the country, Dominguez said.

“I commend the men and women of Land Bank for all the good work you have put in towards building a stronger institution constantly guided by its missions. This financial institution’s exemplary performance could not have been possible without the strong base of clients who avail of the bank’s financial services,” Dominguez said during the recent awarding ceremonies for LandBank’s outstanding clients.

The event, which recognizes LandBank’s clients that have contributed significantly toward elevating the living standards of Filipinos across the country, is part of the institution’s activities to celebrate its 55thanniversary.

The awards include the Gawad PITAK for cooperatives; Gawad Kaagapay for medium and large corporations; Gawad Countryside Financial Institution for thrift, rural and cooperative banks; Gawad SME for MSMEs, and the Gawad MFI for microfinance institutions.

“I would like to congratulate all the awardees… All of the awardees here are the best in your respective categories. By awarding your performance, the LandBank sets the benchmarks for other clients for enterprise excellence, credit discipline, and innovation,” Dominguez said.

During the event, Dominguez also lauded the bank for being a key partner in a wide array of major government programs, among them, the distribution of the Unconditional Cash Transfers (UCTs) to the country’s 10 million poorest households and the conditional cash grants under the Pantawid Pamilyang Pilipino Program (4P); the Public Utility Vehicle (PUV) modernization program; and the Sikat Saka, which provides direct access to credit for small palay farmers who are not yet members of Land Bank-supported cooperatives.

Some 15,000 farmers have already benefited from the Sikat Saka since its launch in 2012.

The LandBank is also a lead implementor of the Go Green Inclusive Financing Program, which provides accessible financing packages for local governments and small and medium enterprises to assist in their adoption of energy-efficient solutions; as well as the Link.Biz Portal, which provides an alternative channel for the payment of fees, dues and charges to both government agencies and private merchants. The Bureau of Internal Revenue (BIR) served as the pilot client for this program.

“All these development missions notwithstanding, LandBank ranks among the best performing banks in the country. So let’s give them a big hand,” Dominguez said.

Aside from the programs that LandBank is implementing for cooperatives, countryside financial institutions, and MSMEs, Dominguez said the Duterte administration is also “pursuing policy reforms to ensure that they get to participate more in our fast-growing economy and partake of its benefits.”

These reforms include a comprehensive tax reform program (CTRP) that seeks to broaden the tax base, create a level playing field for business and generate a reliable revenue process to support both economic investments and more robust social services; the Ease of Doing Business Act of 2018, which aims to cut red tape significantly and make government more responsive to the needs of our entrepreneurs; and various e-governance initiatives that will facilitate not only business registration but also simplify trading procedures.

Dominguez said the second package of the CTRP, which aims to lower the corporate tax rate while modernizing the many incentive programs granted to existing businesses, is expected to create a fairer and more transparent environment for small businesses.

The CTRP will help fund the Duterte administration’s “Build, Build, Build” infrastructure program, which plans to expand economic investments to 7 percent of gross domestic product (GDP) and further invigorate the economy, Dominguez said.

“Be assured that this government is aggressively committed to fostering the growth of our businesses across the country in every manner possible,” he said.

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