The Development Bank of the Philippines (DBP) and the Land Bank of the Philippines (LBP) are both government-owned banks, but they have different primary mandates and functions:
- DBP: Focuses on providing medium- and long-term loans to support the development of small and medium enterprises (SMEs) in both the agricultural and industrial sectors. It aims to promote countryside development and provide banking services for infrastructure projects.
- LBP: Primarily caters to the agricultural sector, providing support for the agrarian reform program and financing for agricultural enterprises. It also supports rural development projects and offers financial services to farmers and rural communities.
Recently, there has been a proposal to merge these two banks to create a larger, more resilient institution that can better serve the country’s development needs. The merger would combine their resources and branch networks, potentially making it the largest bank in the Philippines.
Does this help clarify the differences between DBP and Landbank?