The Land Bank of the Philippines said it will be working with the Philippine Space Agency (PhilSA) and the Department of Science and Technology-Advanced Science and Technology Institute (DOST-ASTI) for the integration of space data and analytics to its financing strategies for the agriculture sector.
PhilSA director general Joel Joseph S. Marciano Jr., Landbank senior vice president Elcid C. Pangilinan, and DOST-ASTI representative Alvin E. Retamar held a ceremonial signing of a Memorandum of Understanding (MOU) on August 8, 2023 in Quezon City to seal the partnership.
The tripartite collaboration covers the development and utilization of space-related technologies for financial applications, conduct of joint research and exchange of relevant data for research undertaking, organization of training symposia or similar activities, and sharing of technological resources.
“Our collaboration with PhilSA and DOST-ASTI is a welcome opportunity to further strengthen Landbank’s agribusiness value chain financing strategies through cutting-edge data. We will continue to explore innovative opportunities to firm up our support for modernizing and growing the agriculture sector,” said Landbank president and CEO Lynette V. Ortiz.
The partnership will provide Landbank key insights to strengthen its capabilities in rolling out more effective lending strategies for the agribusiness value chain, including accurate assessment of multiple risks, monitoring on a near-real-time and site-specific basis, and understanding of the performance and prospects of various agricultural commodity systems.
“Our efforts in the space downstream have also been incessant. We have heightened efforts to engage government agencies, academe, LGUs and other groups in promoting more widespread and effective integration of such data into decision-making and policy formulation,” said Marciano.
Landbank recently reported posting a total of P713.8 billion in outstanding loans directed to agriculture and rural development as of June 30, 2023.
This is above the 25% requirement for local banks to allocate financing for agriculture, fisheries and rural development (AFRD) under Republic Act No. 11901 or “The Agriculture, Fisheries and Rural Development Financing Enhancement Act of 2022.”