MODULE ACTIVITY (W.O.

#2) Overall Points: 20 points

Assignment:

Choose one Private Bank and one Government Bank that exist in the Philippines. Write the history
and all-important details about the banks.

Philippine National Bank (PNB) is the private bank I chose, and The Land Bank of the
Philippines is the government bank I chose.
On July 22, 1916, the Philippine National Bank was established as a government-owned
banking institution, with head office located in the old Masonic Temple along Escolta in Manila.
PNB's primary goal is to provide financial services to Philippine industry and agriculture while
also assisting the government's economic development efforts. During World War I, the
country's exports of sugar, copra, coconut oil, Manila hemp, and tobacco created a huge
demand, but the country did not yet have the development to be able to produce the crops
mentioned due to limited access to credit facilities. So, Henderson Martin, Vice Governor of the
Philippines, and Mr. Miguel Cuaderno prepared the agreement for a national bank to solve the
problem. Though, on February 4, 1916, the Philippine government passed Public Act 2612,
which established PNB in place of the small one million pesos government-owned Agricultural
Bank. Because Filipinos had their own bank, PNB was known "The First Universal Bank of the
Country" when it was founded. PNB is authorized to make short and long-term loans to
agriculture and industry, as well as to accept deposits, open foreign credits, and issue
rediscount bills. As time passed, PNB expanded, and it now had many branches, such as on July
24, 1916, when it established a branch in Iloilo, and in 1917, it established a branch in New
York, when it entered the field of international banking. They also established five more
domestic branches and another overseas branch in Shanghai, China, and they expanded even
further in the following years because they have offices in London, Singapore, Jakarta,
Honolulu, and Amsterdam. It established 14 provincial branches in the domestic market. PNB
went private in 1989, when 30% of its outstanding stock was offered to the public, and its stock
was listed on the stock exchange. In 1992, PNB became the first Philippine bank to reach P100
billion in assets, and a second public offering of its shares was issued to continue its
privatization. Following those years, PNB faced a problem similar to the one they faced during
the liquidity crisis. Despite these challenges, PNB has remained one of the largest banks in the
country, offering a diverse range of competitive financial services to meet the diverse needs of
its bigger customer base, which includes over two million creditor. With remittance centers in
the United States, Canada, London, France, Italy, Hong Kong, Japan, Singapore, and Middle
Eastern countries, PNB continues to maintain its leadership in the overseas money transfer
business.
The land bank is said to be established on August 8, 1963, as an outcome of Republic Act
3844, also known as the Agricultural Land Reform Code. The Land Bank of the Philippines is a
government financial institution that balances its socioeconomic responsibility of promoting
rural development with financial strength. It was established to finance investment and
distribution of agricultural landholdings for division and resale to small landholders, as well as
the agricultural lessee's purchase of the landholding. On July 21, 1973, there was a Presidential
Decree 251 or Revitalizing LANDBANK because the LBP was deficient and insufficient in
capitalization and organizational structure to fulfill the agrarian reform implementation
requirements. So they agreed to give LBP universal or expanded commercial banking powers,
so that the Land Bank is established as the universal bank with a social purpose of boosting
countryside development through cross-subsidization of agrarian land transfer and loans to
small farmers and fishermen. LBP established regional Land Valuation and Landowners
Compensation Offices (LVOs) on June 14, 1990 to carry out land estimation and compensation,
and on February 23, 1995 increased the Land Bank's authorized capitalization to 9 billion pesos.
Since LBP became an official government commercial bank on that date, the Board of Directors
has grown to nine members, including the Chairman or Secretary of Finance, Vice Chairman or
LBP President and CEO, with a members of Secretary of Agrarian Reform, Secretary of Labor,
Secretary of Agriculture, two Representatives of Agrarian Reform Beneficiaries, and two
Representatives from the Private Sector.
Therefore the Philippine National Bank (PNB) and the Land Bank of the Philippines (LBP)
exist to help the people of the Philippines with money by lending and borrowing to Filipinos in
need, while also allowing people to finance their money properly through savings.

Rubrics:
Creativity 25%
Effort and artistry dominate. 5 points)
Completeness 50%
The required content of the journal is complete. (10 points)
Arrangement 25%
The Journal is perfectly arranged. (5points)
TOTAL 100%
(20 points)