MANILA — The Land Bank of the Philippines has enough capital to comply with Bangko Sentral ng Pilipinas requirements even after putting P50 billion as seed money for the Maharlika Investment Fund, it said.

According to media reports over the weekend, Landbank and the Development Bank of the Philippines were seeking regulatory relief from the BSP’s Capital Adequacy Ratio — how much capital it has against its risk — of 10% after putting money in the Maharlika Investment Corp.

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"As of June 2023, Landbank’s Capital Adequacy Ratio (CAR) remains at a very healthy level of 16.61%, well above the 10% minimum requirement of the BSP, while our Common Equity Tier 1 (CET 1) ratio stands at 15.73%, also compliant with the 10.25% CET 1 requirement," its Corporate Affairs Group said in a statement.

Landbank said that it had P3 trillion in assets as of June, while net income was at P20.9 billion from loans and investments earnings, both figures higher than in the previous year.

• EXPLAINER: The Maharlika Investment Fund, as approved by Congress

"The Bank also booked double-digit capital growth at 14.4% to P236.3 billion from P206.5 billion in 2022,” it said.

President Ferdinand Marcos Jr. this month signed Executive Order No. 43 adjust the rate of dividends that the bank has to remit under the Dividend Law for 2022 to zero from 50%.

• Marcos cuts Land Bank's 2022 remittance to gov't to zero

That was done "in order to support the capital position of the Land Bank of the Philippines, maintain its compliance with Bangko Sentral ng Pilipinas regulations on capital adequacy requirements, and expand its role in the economic recovery of industries adversely affected by the COVID-19 pandemic, in the interest of national economy and general welfare," the order read.

"Even with the Bank’s P50 billion seed capital to the MIC as mandated by Republic Act No. 11954, otherwise known as the Maharlika Investment Fund Act of 2023, the Bank will meet its CAR requirements,” Landbank said.