(financial inclusion image[1] from Coins.ph; farm image from me, taken 17 December 2016)
Joann Villanueva
says (19 October 2021, “Agri
Sector Seen To Remain Resilient With More Financing Boost,” PNA.gov.ph), “Monetary authorities said
banks’ compliance on the law remains below the required (levels).” As of
end-June 2021, the banks’ total agri lending has complied with a miserable
9.67% (out of a min 15%), and agra lending 0.96% (min 10%).
This negative double-sided agri-agra loan truth
tells me that PH banks have failed to assist PH Agriculture in their own turfs!
Either the law does not have enough teeth, or banks don’t care!
Additionally, Ms Joann quotes Chief Economist of Rizal Commercial Banking Corporation (RCBC) Michael Ricafort as saying that “the agriculture sector accounts for
almost 10% of domestic output and around 25% of total employment.” I writer
therefore conclude that PH banks are essentially ignoring the economic importance
of the agriculture sector, but not the RCBC (inset, Michael Ricafort).
Notwithstanding, there is very good loan news from LandBank!
ANN says as of December 2020, LandBank’s agri loans accounted for 76.95%, agra
loans 11.52% (Author Not Named, 16 May 2021, “Landbank Supports Agri-Agra Law Amendments To
Expand Loan Access For Farmers, Fishers[2],” LandBank.com). That’s actual 77%
vs required 15% and 12% vs 10% required. Thus, LandBank’s loans grew from P222 Billion in 2018 to P236 Billion in 2019 to P237 Billion in 2020.
For
agriculture, LandBank is doing big things and right that the other PH banks know
or care little about!
ANN also says LandBank “fully supports the ongoing Senate initiative to amend the (Agri-Agra
Law), which will provide farmers and fishers nationwide an expanded and easier
access to responsive agricultural financing.”
How? Like
documentary requirements, what has LandBank done to encourage non-literate
farmer-borrowers? ANN says in 2019, LandBank “started simplifying its loan
processes to make the Bank’s programs more accessible to small farmers and
fishers.” The details: (1) From 3 documents, the loan application form is now
only 1 page. (2) From 14 pages, promissory note is now only 1 page. You scare
non-literate requiring them voluminous documents to submit for any loan!
ANN also says that in partnership with the Department of
Agriculture (DA) and Department
of Agrarian Reform (DAR), LandBank has assisted a total of 2,696,839 farmers
and fishers nationwide as of end-March 2021, an increase of 25,990 for January-March.
“Of the P229.70 Billion total outstanding loans, P36.27 Billion benefitted small farmers
and fishers, cooperatives and farmers’ associations, rural financial
institutions and other conduits.” The DA and DAR should thank LandBank!
LandBank
knows The Big Thing that it should be doing for The Small Farmers, and is doing
it for them.@517
No comments:
Post a Comment