Landbank ramping up sustainable financing efforts through green deposits
The Government-owned Land Bank of the Philippines (Landbank) has bolstered its sustainable financing initiatives with the launch of its GreenGrowth Deposit, a specialized deposit account aimed at supporting social and environmental projects, including renewable energy and green technologies.
According to Landbank president and CEO Lynette V. Ortiz, the introduction of this new sustainable deposit product encourages clients to participate in a transformative journey towards sustainability. Ortiz emphasized Landbank’s dedication to fostering a greener and more sustainable future through initiatives like the GreenGrowth Deposit.
The GreenGrowth Deposit, available to both individuals and private institutions, offers tiered interest rates of up to 4.25 percent per annum. It features a fixed one-year term with a minimum placement of P50,000 and a competitive 2.25 percent interest rate per annum. Additionally, customers can enjoy higher returns of up to 4.25% interest rate for deposits amounting to P5 million and above.
Landbank highlighted that funds deposited under the GreenGrowth Deposit will further bolster its sustainable financing efforts, with a focus on supporting renewable energy projects, green technologies, and other eco-friendly initiatives and investments. Moreover, these funds will also be allocated towards community-centric programs aimed at enhancing social welfare.
As the country’s second-largest bank and the largest state-controlled financial institution, Landbank’s commitment to sustainable finance aligns with broader efforts to address environmental challenges and promote sustainable development.
Last year, Landbank reported a net income of P40.3 billion, reflecting a significant increase from P30.1 billion in 2022. Furthermore, the Bangko Sentral ng Pilipinas (BSP) approved temporary measures to incentivize banks to release sustainable loans, including additional single borrower’s limits and reduced reserve requirements, highlighting the regulatory support for sustainable finance initiatives.
In line with its commitment to sustainability, BSP Governor Eli M. Remolona Jr. emphasized the importance of identifying appropriate incentives to steer capital flows towards green investments and accelerate the development of solutions addressing environmental challenges.
Through initiatives like the GreenGrowth Deposit and regulatory support from the BSP, Landbank aims to contribute to the growth of sustainable finance in the Philippines while promoting environmental stewardship and social responsibility in the banking sector.
Business News: Landbank ramping up sustainable financing efforts through green deposits
