boneka10 @ pasco4d Capital adequacy ratio ‘healthy,’ no need for bailout, Land Bank assures public

DESPITE its capital investment in the Maharlika Investment Corporation (MIC), the Land Bank of the Philippines (LBP) gave assurances that its capital adequacy ratio (CAR) remains at a “healthy level” and was above the regulatory threshold.

CAR was at 16.42 percent and well above the 10-percent regulatory threshold as of November 2024.

The state-run bank stressed that despite the publication of the International Monetary Fund (IMF) observations, it remains “financially robust with no urgent need for additional capital.”

“The Bank (LBP) also clarified that regulatory relief was sought from the BSP as a proactive measure to maintain resilience,” LBP said.

“Land Bank has consistently adhered to prudent financial management practices, effectively utilizing its resources to promote agriculture, fisheries and rural development, and empower key development sectors,” it added.

LBP said that despite its P50-billion contribution to the MIC, it remains fully committed to its mandate as a reliable partner to the national government’s inclusive development agenda.

Following the P50-billion seed capital allocation to the MIF in September 2023, LANDBANK’s CAR stood at 16.2 percent which remains above the regulatory requirements.

The state-run bank said it also remitted P32.119 billion in cash dividends to the National Government—the highest among all Government Owned and Controlled Corporations (GOCCs) and in the Bank’s history.