MANILA, Philippines — The Land Bank of the Philippines (LBP) has made an adjustment to its dividend rate for the year 2022. In an Executive Order (EO) released on Saturday, President Ferdinand “Bongbong” Marcos Jr. signed EO No. 43 to change LBP’s dividend rate from 50% to 0%.
The adjustment is in accordance with Section Five of Republic Act (RA) No. 7656, which mandates government-owned or controlled corporations to declare and remit a dividend of at least 50% of their annual net earnings to the National Government. The President, upon the recommendation of the Secretary of Finance, has the authority to adjust the dividend rate for the sake of the national economy and general welfare.
The EO stated that the adjustment will take effect immediately and only applies to the LBP for the year 2022. The purpose of this adjustment is to sustain the capital position of LBP and ensure compliance with the capital adequacy requirements set by the Bangko Sentral ng Pilipinas. Additionally, this adjustment will enable LBP to play a more significant role in the economic recovery of industries heavily impacted by the COVID-19 pandemic.
Furthermore, the EO highlighted LBP’s commitment to providing credit support to the agricultural sector, benefiting millions of Filipino farmers, fisherfolks, and other agri-business industry stakeholders. The bank also aims to promote financial inclusion, digital transformation, and sustainable development for Filipinos.
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Denial of responsibility! Vigour Times is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
