In the Philippines , a government-owned and controlled corporation ( GOCC ), sometimes with an "and/or", is a state-owned enterprise that conducts both commercial and non-commercial activity. Examples of the latter would be the Government Service Insurance System (GSIS), a social security system for government employees. There are 219 GOCCs as of 2022. GOCCs both receive subsidies and pay dividends to the national government. A government-owned or controlled corporation is a stock or a non-stock corporation, whether performing governmental or proprietary functions, which is directly chartered by a special law or if organized under the general corporation law is owned or controlled by the government directly, or indirectly through a parent corporation or subsidiary corporation, to the extent of at least a majority of its outstanding capital stock or of its outstanding voting capital stock.
28-586: The United Coconut Planters Bank , more popularly known by its initials, UCPB , or by its old name, Cocobank , was a government-owned bank and was one of the largest banks in the Philippines , having ranked within the top twenty banks in the country in terms of assets. It was the only existing universal bank not listed on the Philippine Stock Exchange . The bank, owing to its name, catered heavily to coconut farmers, but also served
56-680: A billion pesos each: Development Bank of the Philippines (DBP) with P3.616 billion; Power Sector Assets and Liabilities Management Corporation (PSALM) with P2.5 billion; Bases Conversion Development Authority (BCDA) with P2.107 billion; Manila International Airport Authority (MIAA) with P1.577 billion; Philippine National Oil Company-Exploration Corporation (PNOC-EC) with P1.5 billion; Philippine Ports Authority (PPA) with P1.422 billion; and Philippine Deposit Insurance Corporation (PDIC) with P1.05 billion. List adapted from Integrated Corporate Reporting System's list. Land Bank of
84-411: A total at its peak, 188 branches and 279 ATMs nationwide. It is also the only universal bank to have a rural banking subsidiary, although this has since been merged into its thrift banking operations since late 2005. On November, the last quarter of 2015, UCPB became a member of BancNet . In 2018, the bank started its conversion to a government bank, joining the league of LandBank , Development Bank of
112-485: A wide-ranging clientele. In July 2020, the Philippine government raised its stake with the bank to 97%, thus resulting for its conversion to a government controlled bank. Effective March 1, 2022, UCPB merged with Land Bank of the Philippines (LBP), with the latter as the surviving entity. As of February 1, 2024, UCPB Savings Bank still survives as a wholly-owned subsidiary of LBP as its thrift bank affiliate. It
140-520: Is either limited to rural banks or is non-existent. LandBank was established on August 8, 1963, as part of the Agricultural Land Reform Code as part of a program of land reform in the Philippines . It was to help with the purchase of agricultural estates for division and resale to small landholders and the purchase of land by the agricultural lessee. In 1965, LandBank's by-laws were approved and its first board of trustees
168-712: Is however up for sale since October 2024 . UCPB started on May 15, 1963, as First United Bank (Philippines) . With only four branches at the time, it was a small commercial bank . UCPB's origin can be found in Presidential Decree No. 755 (or P.D. No. 755) by President Ferdinand Marcos on July 29, 1975, instructed the Philippine Coconut Authority (PCA) to "formulate and recommend for adoption credit policies affecting production, marketing and processing of coconut and other palm oils" and "to provide readily available credit facilities to
196-533: The Bank of the Philippine Islands ), formed MegaLink , one of the three main interbank networks in the Philippines. However, UCPB's ATM services date back to the 1980s, when it was one of the first financial institutions to offer ATM services. It established its pre-need services arm, Cocoplans, in 1993. The bank was also heavily involved in social development projects and other charity works. It had
224-579: The Bank as Vice-Chairman, the Secretary of Agrarian Reform, the Secretary of Labor, and the Secretary of Agriculture as ex officio members. On August 25, 1998, LandBank's authorized capital was once again increased to 25 billion pesos, and it then increased to 200 billion pesos, after the planned DBP–LandBank merger in 2016. In 2014, LandBank was planned to be merged with the Development Bank of
252-478: The Official Gazette of the Philippine government. The Governance Commission among other duties prepares for the president of the Philippines a shortlist of candidates for appointment by the president to GOCC boards. Many but not all GOCCs have their own charter or law outlining its responsibilities and governance. GOCCs receive from the government "subsidies" and "program funds". Subsidies cover
280-487: The Philippines Land Bank of the Philippines ( LBP ; often referred to simply as LandBank ), is a government-owned bank in the Philippines with a special focus on serving the needs of farmers and fishermen . While it provides the services of a universal bank , it is officially classified as a "specialized government bank" with a universal banking license. LandBank is the second largest bank in
308-482: The Philippines (DBP) (P3.16-billion) and Land Bank of the Philippines (LBP) (P6.24-billion). Under Republic Act No. 7656, all GOCCs are required to "declare and remit at least 50% of their annual net earnings as cash, stock or property dividends to the National Government." The Commission on Audit reports that in 2013 of the 219 profitable GOCCs, only 45 remitted a full 50% share of their dividends to
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#1732782545334336-550: The Philippines (DBP). President Benigno Aquino III signed Executive Order No. 198 on February 4, 2016, to give way on the merger, with the former as the surviving entity. However, the Duterte administration canceled the merger later that year. Three years into the Presidency of Bongbong Marcos , this had been officially cancelled. On June 25, 2021, President Rodrigo Duterte signed Executive Order No. 142 which mandates
364-400: The Philippines and Overseas Filipino Bank . Later in 2020, the Philippine government dropped the privatization plans of the bank by further raising its stake of ownership from 75% to 97%, thus resulting furthermore for UCPB in becoming a state-owned and controlled bank. On June 25, 2021, President Rodrigo Duterte signed an Executive Order No. 142 to merge Land Bank of the Philippines with
392-569: The Philippines , Land Bank of the Philippines and Overseas Filipino Bank . Government-owned and controlled corporation Under the GOCC Governance Act (Republic Act No. 10149), GOCCs are overseen by the Governance Commission for Government-Owned or Controlled Corporations (GCG). The Governance Commission is the "government's central advisory and oversight body over the public corporate sector" according to
420-594: The Philippines in terms of assets and is the largest government-owned bank. It is also one of the biggest government-owned and controlled corporations and banking institutions in the Philippines along with the Development Bank of the Philippines (DBP), Overseas Filipino Bank (OFW Bank), and Al-Amanah Islamic Investment Bank of the Philippines . Unlike most Philippine banks, LandBank has an extensive rural branch network with 409 Branches and Extension Offices, 46 Lending Centers and 2,188 ATMs (as of February 2020). It services many rural sector clients in areas where banking
448-421: The Philippines to be issued such a license) with a social mission to spur countryside development. The decree expanded LandBank's powers to include lending for agricultural, industrial, homebuilding and home-financing projects and other productive enterprises, as well as lending to farmers' cooperatives and associations to facilitate production, marketing of crops and acquisition of essential commodities. LandBank
476-487: The UCPB, with the former as the surviving entity. Subsidiaries of UCPB were the following: Due to its position as a universal bank, UCPB competed primarily against major Philippine banks like Metrobank , Banco de Oro , EastWest Bank , BPI , Land Bank of the Philippines and PNB . As a state-controlled bank, it joined the league in competition even if for a short while with other government banks - Development Bank of
504-809: The budget. In 2014, 77.04 billion pesos was spent on GOCCs by the national government, 3% of which was classified as subsidies and 97% was classified as program funds. In 2013, on "GOCC Dividend Day", the Philippine government received 28-billion Philippine pesos in dividends and other forms of remittances from the 2012 operations of 38 GOCCs. Eight GOCCs remitted 1 billion pesos each: Philippine Reclamation Authority (PRA)(P1 billion pesos), Philippine Ports Authority (PPA)(1.03-billion), Manila International Airport Authority (MIAA)(P1.54-billion), Philippine Amusement and Gaming Corporation (PAGCOR) (P7.18-billion), Power Sector Assets and Liabilities Management Corporation (PSALM)(P2-billion), Bases Conversion Development Authority (BCDA)(P2.30-billion), Development Bank of
532-466: The coconut farmers at preferential rates." The PCA, headed by Juan Ponce Enrile , then purchased the 72.2% of First United Bank owned by Jose Cojuangco . Cocobank was the official short bank name in the 1980s and the early 1990s. In 1990, UCPB, along with Equitable Banking Corporation (now Banco de Oro Universal Bank ), Philippine National Bank and the Far East Bank and Trust Company (now
560-425: The cost of the value of the land plus six percent interest per annum. By 1973, LandBank was in financial distress. It lacked the resources and the capital needed to implement the land reform programs and lacked the structure to implement the programs efficiently. On July 21, Marcos signed Presidential Decree No. 251 which revitalized the bank. The decree granted LandBank a universal banking license (the first bank in
588-463: The day-to-day operations of the GOCCs when revenues are insufficient while program funds are given to profitable GOCCs to pay for a specific program or project. Subsidies from the National Government in 2011 amounted to 21 billion Philippine pesos . In the 2013 fiscal year, the national government gave P71.9 billion pesos to GOCCs in subsidies, nearly twice the 44.7 billion pesos that was programmed in
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#1732782545334616-495: The merging of LandBank with the United Coconut Planters Bank (UCPB), with LandBank as the surviving entity. LandBank competes against the major banks such as Metrobank , Bank of the Philippine Islands (BPI), Banco de Oro and Philippine National Bank (PNB). In rural areas, it either competes against or complements rural banks. On the other end of the spectrum, LandBank takes on a dual role with
644-403: The national treasury, leaving 174 others with unremitted government shares, amounting to more than P50 billion. Dividends remitted were only one-tenth (1/10) of the total required by law according to the commission. In 2014, on "GOCC Dividend Day", the Philippine government received 32.31 billion Philippine pesos worth of dividends and other remittances from 50 GOCCs. Seven GOCCs submitted over
672-521: The third member of Expressnet , an interbank network in December 1991 but now a BancNet member. On February 23, 1995, LandBank's charter was once again amended. Its authorized capital was increased to ₱9 billion and it became an official government depository. The number of members of the board of trustees was also increased to nine whereas the Secretary of Finance, as Chairman, the President of
700-414: Was also required by the decree to provide timely and adequate support in all phases involved in the execution of agrarian reform and also increased its authorized capital to ₱3 billion . It also became exempted from all national, provincial, city and municipal taxes and assessments. LandBank was reorganized in 1977 when it was divided into three sectors to better assess the needs of its customers. It
728-500: Was divided into Agrarian, Banking, and Operations sectors to strengthen operations and ensure long-term viability. In 1982, the Agricultural Credit Administration (ACA), established under the same law as LandBank, was abolished and all its assets and functions transferred to LandBank. ACA's function was to extend credit to small farmers. Also in this year, Union Bank of the Philippines (UnionBank)
756-501: Was formed, with LandBank having a 40-percent stake in the government-owned commercial bank . LandBank became the financial intermediary for the Comprehensive Agrarian Reform Program (CARP) in 1988. It was also in that year that UnionBank started a gradual privatization. The Aboitiz Group of Companies acquired LandBank's 40% share of UnionBank then which it continues to own. LandBank also became
784-446: Was formed, with the Secretary of Finance as chairman. On October 21, 1972, Presidential Decree No. 27, signed by President Ferdinand Marcos , emancipated all tenant farmers working on private agricultural lands devoted to rice and corn, whether working on a landed estate or not. The system was implemented through a system of sharecropping or lease-tenancy. LandBank was tasked to collect 15-year land amortizations from beneficiaries at
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