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It is in this environment that LBP, as the official agriculture bank of the Philippines, is looked upon as a model for other banks to follow.

They will then come closer to complying with the Agri-Agra law.A model is suggested by Pablito Villegas, who has worked on rural credit in 20 countries as a consultant for organizations such as the United Nations and Asia Development Bank.Here is his suggested model that follows the direction of LBP president Buenaventura, but provides additional details: LBP should form a network of satellite countryside banking and lending centers at the LGU and community levels. LBP should help implement the government’s convergence policy of DA, DENR, DAR, DTI and DOST through integrated area development.Buenaventura’s corporative management system demonstrates such profarmer institutional arrangements within the value-chain where the exploitative elements of many existing agriculture supply chains are addressed and resolved.LBP’s integrated financial delivery and recovery system will be complemented by the coordinated business development, extension and capacity building support from converging NGAs, NGOs, people organizations and agribusinesses.

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